Tag Archives: forex

EaseMyTrip aims to foray into forex biz; will apply for Full-Fledged Money Changer License from RBI

EaseMyTrip aims to launch a currency exchange service, and for this will apply for a Full-Fledged Money Changer License (FFMC) from the Reserve Bank of India (RBI). It will enable customers to easily convert their currencies to local tenders. Acquiring this license will enable EaseMyTrip to offer to extend its portfolio and offer one of the core services needed for international travel, furthering its mission of developing the company into a complete travel ecosystem.

Through the introduction of this service, EaseMyTrip will be able to provide its more than 11 million customers and nearly 60,000 travel agents with currency exchange service. Furthermore, foreign currency numbers are huge as the demand for international travel continues to grow exponentially. Through this service, customers who want to exchange Indian currency for an international banknote will be able to do so at ease. Similarly, international travellers coming to India for their travels can also avail of this service and get their international currency exchanged into Indian currency.

The decision to enter into the foreign exchange market was taken after the company witnessed a substantial increase in international businesses looking to enter the Indian markets.

Speaking on the development, Rikant Pittie, Co-Founder, EaseMyTrip said, “EaseMyTrip has been offering its value added services to its users for the past 13 years, which is why we decided to apply for the license. The introduction of a forex service stands as the next best step in becoming a complete travel ecosystem. It will also permit us to become an integral part of the greater national forex footprint, enabling us to increase our turnover over the course of the coming years.”

 

India’s forex reserves record sharpest ever weekly fall of USD 11.17bn

India’s foreign exchange reserves fell by USD 11.17 billion for the week ending April 1 – the sharpest ever weekly drop – to settle at USD 606.475 billion, PTI reported Saturday citing Reserve Bank of India data. The fall has been attributed to pressure on the Indian rupee as a result of the conflict in Ukraine, the continuing impact of the Covid pandemic, and other geopolitical developments.

The value of gold reserves also fell – by USD 507 million to USD 42.734 billion, RBI data showed.

For the previous week – ending March 25 – reserves slid by USD 2.03 billion to USD 617.648 billion. The previous worst weekly fall was of USD 9.6 billion for the week ending March 11.

This is the fourth consecutive week of decline in forex reserves as the RBI intervenes in the currency markets by way of dollar sales to prevent a slide in value of the rupee amid the Ukraine conflict.

Forex reserves have declined by over USD 26 billion in the past four weeks for which data is available.

The steep fall last week was due to decline in core currency assets, which fell by USD 10.727 billion to USD 539.727 billion. Expressed in dollar terms, foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

The RBI on Friday issued its first monetary policy for FY 2022/23, in which it held key lending rates unchanged; the repo rate is four per cent and the reverse repo rate is 3.35 per cent.

RBI governor Shaktikanta Das said the six-member Monetary Policy Committee voted unanimously to leave the rates unchanged and keep the central bank’s stance ‘accommodative’.

Das also said India’s projected real GDP is expected to be 7.2 per cent and quarterly inflation projections are 6.3 per cent in Q1, 5 per cent in Q2, 5.4 per cent in Q3 and 5.1 per cent in Q4.