HENCY R SHAH AND ASSOCIATES

  India's forex reserves ease after hitting over nine-month highs India's forex reserves dropped by USD 2.164 billion to USD 584.248 billion for the week ended April 21, the Reserve Bank said on Friday.  In the previous reporting week, the overall kitty had risen by USD 1.657 billion to USD 586.412 billion.  It can be noted that in October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments. For the week ended April 21, the foreign currency assets, a major component of the reserves, decreased by USD 2.146 billion to USD 514.489 billion, according to the Weekly Statistical Supplement released by the RBI. Expressed in dollar terms, the 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. Gold rese...

Crypto under PMLA: New rules of the game The central government has tightened regulatory control over virtual digital assets, more commonly known as cryptocurrencies. According to a gazette notification, the government has mandated that a host of trading activities in such assets will now come under the ambit of the Prevention of Money Laundering Act (PMLA). In other words, going ahead, trading between cryptocurrencies and fiat currencies or among cryptocurrencies and other such services can be investigated by agencies such as the Enforcement Directorate (ED) and the Income Tax department. The move should be seen in light of the government’s efforts to bring cryptocurrencies under greater regulation. In April 2022, for instance, the government introduced a 30% income tax on gains made from cryptocurrencies. Later in July 2022, the government brought in rules regarding 1% tax deducted at source on cryptocurrency. Broadly speaking, greater regulation of cryptocurrencies is advisable. ...

₹ to use as foreign trade currency   Use of rupee in foreign trade:  In order to facilitate international trade, Sri Lanka has agreed to utilize ₹. It occurs shortly after the Indian government announced it was looking into ways to include nations who are particularly short on dollars in the Indian rupee trade settlement process. Notably, the Indian government has been attempting to entice nations with dollar shortages to use its rupee settlement system since July of this year. The Indian rupee trade settlement system allows for the use of the Indian rupee in place of dollars and other major currencies in all international transactions. The RBI announced the creation of a system to conduct foreign trade in Indian rupees on July 11. While the market determines the exchange rate between the trading partners, the method will allow all exports and imports to be denominated and billed in Indian rupees. In order to educate stakeholders on the rupee trade, the Indian Fina...