The duo has been identified as Lilaram Revani from Vadodara and Harun M from Godhra, they said.
The arrested accused have been handed over to the Enforcement Directorate in Ahmedabad for further investigation, police inspector R R Chaudhary said.
Cash of Rs 1.63 lakh and foreign currencies including dollars, pounds and others worth over Rs 15 lakh and a mobile phone have been recovered from them, he said.
According to Chaudhary, the police team raided Sainath gift shop located in Karelibag locality here, from where the duo were operating.
Police raided the place after ascertaining from the ED authorities that it was illegal to do business of foreign exchange without permission.
Buying or selling of foreign currency by an individual or company who is not an authorised dealer or has not obtained permission of the concerned authorities, is illegal, police said.