Pak Sahafat – An Indian official announced the beginning of the settlement of trade transactions between India and Bangladesh with rupees and said: The main purpose of this measure is to reduce dependence on the US dollar and overcome conditions such as the lack of foreign exchange reserves in the countries.
According to Pak Sahafat News Agency from the Economic Times of India, a senior official of the Ministry of Industry of India said that the initiation of settlement of cross-border trade between India and Bangladesh in Indian rupees will promote bilateral trade by reducing the transaction cost.
“Sanjay Bodhia” added: “Because all exports and imports and settlement of business transactions with this method can be invoiced in Indian rupees, it reduces the dependence on the US dollar, and apart from strengthening the currency and regional trade in situations such as lack of reserves.”
In July, Bangladesh and India began trading in rupees with the aim of reducing dependence on the US dollar and strengthening regional currency and trade.
This will certainly boost the growth of trade between the countries and support the growing interest of the global business community in the rupee, Bodhia said.
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He said, “Bangladesh is currently facing a shortage of foreign exchange reserves and the introduction of trade settlement in rupees will go a long way in solving this situation and lead to increased demand for imports from India.”
The Indian official added: The trade settlement in rupees will reduce the uncertainty of the exchange rate for Indian companies by ignoring the need to use US dollars before carrying out financial transactions and will have similar effects on Bangladesh. This will further strengthen the important economic relations between India and Bangladesh.
Bodhia proposed the creation of a technology fund through which the Indian government could cover 40% of the financial costs of R&D and innovation projects and cover the other 60% with the participation of the private sector.
Bangladesh is India’s largest trading partner in South Asia and India is Bangladesh’s second largest trading partner.
Banks in Bangladesh and India are allowed to open Nostro accounts, an account in one of the banks of another country for the purpose of foreign exchange.
According to the official statistics of the Bangladesh government, the export of Bangladesh to India is 2 billion dollars and the import of Bangladesh from India is 13.69 billion dollars.