Foreign exchange industry hit hard

Cuttack: The foreign exchange (currency exchange) industry in Odisha has been hit hard, witnessing a sharp decline in business, as uncertainty triggered by the ongoing war in West Asia has led many travellers to cancel or postpone overseas trips.Forex dealers say the slowdown has come at a time when the sector usually witnesses peak demand due to the upcoming summer vacation when people travel abroad for holidays, education and business.According to industry, the annual turnover of the forex exchange market in Odisha is around Rs 600 crore, but transactions have dropped drastically in the past few weeks due to reduced outbound travel. "There has been nearly an 80% reduction in currency exchange transactions. People who had planned foreign trips are now cancelling or postponing them due to the global situation," Abhijit Das, an employee at a foreign currency exchange firm in Bhubaneswar, said.Odisha currently has around 13 authorised forex exchange companies, most of them operating from Bhubaneswar, providing employment to over 100 people. With fewer travellers visiting exchange counters, dealers say daily business has been severely affected.Industry figures highlight the sharp fall in transactions. "Last month, the turnover was around Rs 83 crore, but this month so far, it has barely touched Rs 56 lakh," Das added."Normally this is the peak season for our business. Families, tourists and students exchange foreign currency before travelling abroad during summer holidays. But this year the footfall is extremely low," Abhisek Mohanty, a forex dealer in Bhubaneswar, said."This war has had tremendous impact, the first impact is seen on international travel. People avoid flying abroad due to safety concerns and rising costs and that directly affects forex demand. Dealers have reduced business 80 to 90%," Mohanty added."The forex sector had only just begun to recover after the severe losses incurred during the Covid-19 pandemic. This sudden decline due to the ongoing war situation has again pushed the industry into a difficult phase, annual turnover of over 600 crore witnessed in Odisha, which has hit badly," Sabyasachi Satpathy, a forex dealer in Bhubaneswar, said.Forex operators say the sector's recovery depends largely on the revival of international travel. "Our business is directly linked to outbound tourism. If people stop travelling abroad, the forex market automatically slows down," Satpathy added. Get the latest lifestyle updates on Times of India, along with EId ul fitr 2026 wishes, messages and quotes !