Odisha's Foreign Exchange Industry Faces Severe Downturn Amid Global Conflict
The foreign exchange (forex) industry in Odisha is experiencing a dramatic collapse in business, with transactions plummeting by an estimated 80-90% as the ongoing war in West Asia creates widespread uncertainty and prompts travellers to cancel or postpone overseas trips.
Sharp Decline During Peak Season
Forex dealers report that this severe slowdown has arrived at what is traditionally their busiest period—the summer vacation season when families, tourists, and students typically exchange currency for international travel, education, and business purposes. Instead of peak demand, exchange counters are witnessing extremely low footfall.
"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," said Abhijit Das, an employee at a foreign currency exchange firm in Bhubaneswar.
Staggering Financial Impact
Industry figures reveal the devastating scale of the downturn. The annual turnover of Odisha's forex exchange market, which typically reaches around Rs 600 crore, has suffered a drastic reduction in recent weeks.
"Last month, the turnover was around Rs 83 crore, but this month so far, it has barely touched Rs 56 lakh," Das added, highlighting the severity of the decline.
Industry Voices Concern
Abhisek Mohanty, a forex dealer in Bhubaneswar, explained the direct connection between international conflict and currency exchange demand: "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%."
Sabyasachi Satpathy, another forex dealer in Bhubaneswar, noted the particularly difficult timing for the industry: "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."
Employment and Operational Challenges
Odisha currently has approximately 13 authorized forex exchange companies, most operating from Bhubaneswar, employing over 100 people. With fewer travellers visiting exchange counters, daily business operations have been severely disrupted across the sector.
Recovery Tied to Travel Revival
Forex operators emphasize that their sector's recovery is entirely dependent 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, outlining the fundamental connection between travel patterns and currency exchange demand.
The industry now faces an uncertain future as geopolitical tensions continue to influence travel decisions, leaving Odisha's forex market in a precarious position during what should be its most profitable season.
