Today, every kind of business in the world is done through dollars. But there are many countries that want to get rid of the dollar. A historic agreement has been signed between Bangladesh and India. Through this, Bangladesh will now do its trade with India in rupees.
Bangladesh has become the 19th country to trade with India in Indian currency instead of dollar. The two countries had been in talks for months to use the local currency to bridge the dollar and facilitate their transactions.
To start international business with India, two Bangladeshi banks Sonali Bank and Eastern Bank Limited (EBL) will open their Vostro accounts with two Indian banks SBI and ICICI Bank. Both the Indian banks will also open their accounts in these Bangladeshi banks.
Without any third currency, both countries will do their business in taka and rupee. According to a Business Standard report, Mohammad Afzal Karim, CEO and MD of Sonali Bank Limited, said, “Such trade will reduce the pressure on the dollar of both the countries.” This will benefit both the countries.
Bangladesh Bank Executive Director Mejbul Haque said businesses in his country welcomed rupee-taka trade with India as it would ease pressure on foreign exchange reserves.
Trade is also done in rupees from these countries.
As per reports, Bangladesh’s imports from India in the last financial year were around $13.69 billion. Out of which $2 billion will be traded in Indian Rupees and the rest will be paid in US Dollars. EBL MD said, “We will inform customers that imports and exports with India can be done directly in rupees after approval from the central bank of both the countries.
Any trader who wants to do business in rupees will be given a letter of credit. This will benefit the traders. Russia, Singapore, Sri Lanka, Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Seychelles, Tanzania, Uganda and the United Kingdom are the countries with which trade is also done in rupees. , ,