Bangladesh and India Launch Trade Transactions in Rupees
Bangladesh and India Launch Trade Transactions in Rupees
Bangladesh and India have commenced trade transactions using local currency, the Rupee. The move intends to reduce dependency on the US dollar and further strengthen regional currency and commerce. This bilateral agreement is a crucial step for Bangladesh, marking its shift from US dollar-based trade settlements with foreign countries. This move showcases the flourishing economic cooperation between India and Bangladesh, fostering mutual benefits. Bangladesh Bank Governor, Abdur Rouf Talukder, has referred to it as the "first step in a great journey.” The Taka-Rupee dual currency card, likely to be launched from September, will decrease transaction costs, making trade more convenient. The value of Bangladesh exports to India is $2 billion while it imports valued at USD 13.69 billion from India. Although some economists show skepticism about immediate benefits for Bangladesh due to the trade deficit, Governor Talukder underscores the broader impact on exporters and importers in both countries.
Important Points to remember:
- India and Bangladesh have initiated trade transactions in Rupees.
- The move aims to reduce reliance on US dollar and strengthen regional trade.
- The Taka-Rupee dual currency card will decrease transaction expenses and strengthen economic ties.
- Both countries' banks have been permitted to open nostro accounts for foreign currency transactions.
- Bangladesh exports to India are valued at USD 2 billion, while imports from India are worth USD 13.69 billion.
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