What’s Happening in Markets Ahead of Eid
As Eid‑ul‑Fitr approaches, the sale of new currency notes at prices higher than their face value has started in several markets. Shopkeepers have reportedly set up stalls and handcarts in busy bazaars where bundles of fresh notes are being sold openly.
This practice appears every year around Eid because many families prefer giving crisp new notes as Eidi. When demand rises and official availability feels limited, some traders step in and charge an extra amount as a “premium.” The result is a small seasonal black market where people pay more than the printed value to get clean notes quickly.
The story matters for ordinary people because the premium is not small. For regular wage earners, spending hundreds of extra rupees just to get new notes adds direct pressure on household budgets during an already expensive festive period.
Rates Being Charged: How Much Extra People Pay
Reports from markets such as Raja Bazaar, Saddar, and Commercial Market show clear premium pricing on commonly used denominations.
Examples being quoted include:
• A bundle of Rs10 notes worth Rs1,000 being sold for Rs1,500 (a Rs500 premium).
• A bundle of old Rs10 notes worth Rs1,000 being sold for Rs1,300.
• A bundle of Rs20 notes worth Rs2,000 being sold for Rs2,600 (a Rs600 premium).
• Twenty Rs50 notes being sold for Rs1,300.
• Ten new Rs100 notes being sold for Rs1,400.
These prices show that the premium changes by denomination and by whether notes are brand new or just “clean enough.” Even old Rs10 bundles are still being sold above face value, which suggests that the main driver is demand for small notes, not only demand for fresh notes.
Why This Happens Every Eid
The Eid note premium market usually has three main causes. First is demand. Small denominations are the most popular for Eidi, so they run out quickly. Second is access. Many people cannot visit banks during working hours or do not know where to get new notes officially. Third is convenience. Street vendors provide instant bundles, so some buyers accept the extra cost.
When supply feels tight, traders can charge a premium because the buyer’s priority is not “value,” it is “fresh notes today.” That behaviour is common in seasonal markets: the price rises because people want the product at a specific time.
However, there is also an economic point: paying extra for currency notes is essentially paying for something that already belongs to you in value terms. A Rs1,000 bundle is still worth Rs1,000, so the premium is a pure convenience cost—and it can become exploitative when vendors charge very high margins.
What Buyers Can Do and Why It’s Risky to Encourage the Trade
If you want new notes for Eid, the safest approach is to try official channels first. Banks and official exchange counters are the most reliable sources when available, and they reduce the incentive for black‑market selling.
Practical steps that can help families avoid heavy premiums:
• Plan early and withdraw smaller denominations gradually instead of buying bundles at the last minute.
• Ask your bank branch about availability and timings before Eid, because stocks can vary.
• If you cannot find new notes, use clean notes rather than paying large premiums.
• Avoid buying from unknown stalls where notes may be mixed, damaged, or where you could face fraud.
There is also a broader point: when people keep paying premiums, the market grows. Vendors are encouraged to stock and resell notes at higher prices every year. For consumers, it becomes a cycle—limited access pushes demand to bazaars, and bazaar pricing becomes the “normal” expectation.
As Eid approaches, these markets become more active in crowded areas, so buyers should stay alert, count notes carefully, and avoid unnecessary extra spending. In the end, the real value of Eidi is the gesture, not whether the notes are brand new.
