Latest news with #foreigncurrency
CTV News
a day ago
- CTV News
‘The pesos are too old': Ontario woman frustrated after bank reverses currency exchange of $1,400
When travelling abroad, you may come home with foreign currencies. if you hang onto foreign currency too long it could become outdated and lose its value.
Free Malaysia Today
13-06-2025
- Business
- Free Malaysia Today
26 arrests in new Venezuela crackdown on dollar black market
Mass arrests have occurred over what Venezuelan President Nicolas Maduro has dubbed the 'criminal dollar'. (AP pic) CARACAS : Venezuelan authorities have detained 26 people in a fresh crackdown on the dollar black market, bringing the total number of arrests in recent days to 50, the country's top prosecutor said Saturday. 'The total number of detainees for economic crimes and illegal sale of foreign currency… is 50,' attorney general Tarek William Saab told AFP. The arrests come as Venezuela's government seeks to rein in a foreign exchange black market that developed after a 2018 decision to allow the use of US dollars to pay for goods and services in the country. That decision aimed to deal with the effects of runaway inflation that rendered the domestic currency, the bolivar, essentially worthless. The dollar has since then become the de facto currency in Venezuela. Caracas never opted for formal dollarization, and has instead pegged the value of the local currency to the greenback. The black market has swelled as high demand for dollars has far outpaced their availability through official channels. For years, the black market was tolerated. Things changed in 2024 when the gap between the official and 'parallel' rates expanded quickly, bringing fresh inflationary pressure for the oil-rich but chronically mismanaged and heavily sanctioned South American country. After months of stability with similar rates, the black market dollar had in recent weeks been trading between 25% and 50% higher than the official rate to the bolivar, before narrowing again. On Saturday, the official price was trading at $1 against 99.09 bolivares, while on the black market, the dollar was quoted at 115.37 bolivares, after soaring to 150 for some operators a few weeks ago. This gap in rates has raised fears of a return to hyperinflation, severe recession and shortages. The government, which had long ignored the black market, suddenly toughened its stance, with mass arrests over what president Nicolas Maduro has dubbed the 'criminal dollar.' The rate gap has widened since Washington's decision to reverse an easing of the oil embargo imposed on Venezuela, pushing up prices and depressing the bolivar. The return to a 'hard' embargo in effect deprives Venezuela of dollars on the international market, even as Caracas is rushing to inject millions of dollars into the market to prevent its exchange rate gap from widening.
Khaleej Times
12-06-2025
- Business
- Khaleej Times
India to tighten remittance rules, bar offshore time deposits, sources say
India's central bank plans to tighten rules for overseas remittances by resident Indians, barring them from holding foreign currency deposits with lock-in periods, two government sources said. The Reserve Bank of India (RBI) will amend regulations to prevent overseas transfers from being used to park money in time deposits or other interest-bearing accounts abroad, one of the sources said. "This is akin to passive wealth shifting, which is a red flag for the RBI in a still-controlled capital regime," the first source familiar with the thinking of the central bank said. The proposed changes reflect India's cautious stance on a rise in outward remittances and full convertibility of the rupee, as authorities strive to safeguard foreign exchange reserves and manage currency volatility, the sources said. Overseas investments by individuals fall under the central bank's Liberalised Remittance Scheme (LRS) — which allows resident Indians to remit up to $250,000 in a single year — for purposes ranging from foreign education, travel, equity and debt investments to medical treatments. While discussions with the government are ongoing, the RBI aims to ensure such deposits cannot be made even under alternate names, the second source said. Both sources declined to be identified due to the confidentiality of the talks. The finance ministry and the RBI did not respond to emailed requests for comment. The move is part of a comprehensive review of the legal framework governing the scheme to simplify the regulations, a priority highlighted by the central bank in its annual report. RBI data showed that deposits under outward remittances by resident individuals rose sharply to $173.2 million in March from $51.62 million in February. Outward remittances typically spike in March as it allows residents to maximise their annual limits and optimise taxes, making it the busiest month under LRS but the RBI is concerned that a portion of this may be getting passively parked. For financial year 2024/25, total annual outward remittances under the scheme dipped but remained high at nearly $30 billion compared with $31 billion a year ago. The sources did not disclose the amount currently held in foreign currency deposit accounts, but said the move is "preventative". India's outward remittances under the scheme have steadily increased, particularly as fintech platforms and private banks have made global investing easier for retail investors. "The move addresses a growing misuse of the scheme as a vehicle for passive capital export," the second source said. "It also aligns the scheme more closely with India's calibrated approach to capital account convertibility." India has remained cautious on allowing unrestricted outflows, partly to preserve its foreign exchange reserves and manage currency volatility. The revised rules will not affect permissible foreign investments in equities, mutual funds or property under the LRS, the second source said.
Yahoo
12-06-2025
- Business
- Yahoo
India to tighten remittance rules, bar offshore time deposits, sources say
By Shubham Batra MUMBAI (Reuters) -India's central bank plans to tighten rules for overseas remittances by resident Indians, barring them from holding foreign currency deposits with lock-in periods, two government sources said. The Reserve Bank of India (RBI) will amend regulations to prevent overseas transfers from being used to park money in time deposits or other interest-bearing accounts abroad, one of the sources said. "This is akin to passive wealth shifting, which is a red flag for the RBI in a still-controlled capital regime," the first source familiar with the thinking of the central bank said. The proposed changes reflect India's cautious stance on a rise in outward remittances and full convertibility of the rupee, as authorities strive to safeguard foreign exchange reserves and manage currency volatility, the sources said. Overseas investments by individuals fall under the central bank's Liberalised Remittance Scheme (LRS) — which allows resident Indians to remit up to $250,000 in a single year — for purposes ranging from foreign education, travel, equity and debt investments to medical treatments. While discussions with the government are ongoing, the RBI aims to ensure such deposits cannot be made even under alternate names, the second source said. Both sources declined to be identified due to the confidentiality of the talks. The finance ministry and the RBI did not respond to emailed requests for comment. The move is part of a comprehensive review of the legal framework governing the scheme to simplify the regulations, a priority highlighted by the central bank in its annual report. RBI data showed that deposits under outward remittances by resident individuals rose sharply to $173.2 million in March from $51.62 million in February. Outward remittances typically spike in March as it allows residents to maximise their annual limits and optimise taxes, making it the busiest month under LRS but the RBI is concerned that a portion of this may be getting passively parked. For financial year 2024/25, total annual outward remittances under the scheme dipped but remained high at nearly $30 billion compared with $31 billion a year ago. The sources did not disclose the amount currently held in foreign currency deposit accounts, but said the move is "preventative". India's outward remittances under the scheme have steadily increased, particularly as fintech platforms and private banks have made global investing easier for retail investors. "The move addresses a growing misuse of the scheme as a vehicle for passive capital export," the second source said. "It also aligns the scheme more closely with India's calibrated approach to capital account convertibility." India has remained cautious on allowing unrestricted outflows, partly to preserve its foreign exchange reserves and manage currency volatility. The revised rules will not affect permissible foreign investments in equities, mutual funds or property under the LRS, the second source said.
Yahoo
12-06-2025
- Business
- Yahoo
India to tighten remittance rules, bar offshore time deposits, sources say
By Shubham Batra MUMBAI (Reuters) -India's central bank plans to tighten rules for overseas remittances by resident Indians, barring them from holding foreign currency deposits with lock-in periods, two government sources said. The Reserve Bank of India (RBI) will amend regulations to prevent overseas transfers from being used to park money in time deposits or other interest-bearing accounts abroad, one of the sources said. "This is akin to passive wealth shifting, which is a red flag for the RBI in a still-controlled capital regime," the first source familiar with the thinking of the central bank said. The proposed changes reflect India's cautious stance on a rise in outward remittances and full convertibility of the rupee, as authorities strive to safeguard foreign exchange reserves and manage currency volatility, the sources said. Overseas investments by individuals fall under the central bank's Liberalised Remittance Scheme (LRS) — which allows resident Indians to remit up to $250,000 in a single year — for purposes ranging from foreign education, travel, equity and debt investments to medical treatments. While discussions with the government are ongoing, the RBI aims to ensure such deposits cannot be made even under alternate names, the second source said. Both sources declined to be identified due to the confidentiality of the talks. The finance ministry and the RBI did not respond to emailed requests for comment. The move is part of a comprehensive review of the legal framework governing the scheme to simplify the regulations, a priority highlighted by the central bank in its annual report. RBI data showed that deposits under outward remittances by resident individuals rose sharply to $173.2 million in March from $51.62 million in February. Outward remittances typically spike in March as it allows residents to maximise their annual limits and optimise taxes, making it the busiest month under LRS but the RBI is concerned that a portion of this may be getting passively parked. For financial year 2024/25, total annual outward remittances under the scheme dipped but remained high at nearly $30 billion compared with $31 billion a year ago. The sources did not disclose the amount currently held in foreign currency deposit accounts, but said the move is "preventative". India's outward remittances under the scheme have steadily increased, particularly as fintech platforms and private banks have made global investing easier for retail investors. "The move addresses a growing misuse of the scheme as a vehicle for passive capital export," the second source said. "It also aligns the scheme more closely with India's calibrated approach to capital account convertibility." India has remained cautious on allowing unrestricted outflows, partly to preserve its foreign exchange reserves and manage currency volatility. The revised rules will not affect permissible foreign investments in equities, mutual funds or property under the LRS, the second source said.
