• International

Indian Bank's proposal to trade with Bangladesh in taka and rupee

  • International
  • 21 September, 2022 00:41:37

Photo: Collected

International Desk: Food and fuel prices are rising around the world due to the Korta Pandemic and Russia-Ukraine war. To pay this extra price, foreign currency, especially the dollar reserves, have to give a hand to the developing and poor countries of the world.

But as a result, these countries are at risk of serious economic imbalances. In the meantime, Sri Lanka has declared itself bankruptcy, and in its neighboring countries, Pakistan is decreasing day by day, as well as the economic crisis is becoming serious.

To avoid possible catastrophe in this situation, India's top bank and lending company State Bank of India (SBI) has proposed to use rupees and money instead of dollars in India's bilateral trade with Bangladesh.

A letter was sent to various branches of the bank from the headquarters of the SBI on August 25. The letter states, “India's internal reserve is under pressure as the import costs increase. In this situation, it can be considered whether the money and money of the two countries can be used in bilateral trade with Bangladesh. '

Last year, the reserve of Bangladesh was $ 1 billion. But due to the increase in import costs, the reserves have now come down to $ 1 billion. The Bangladeshi government has already sought $ 1.8 billion loans from the International lender company IMF to protect the economic balance.

Therefore, in the changing circumstances, Bangladesh is also considering the business of rupees and money instead of dollars with India, with India. At a function in Dhaka last week, Commerce Minister Tipu Munshi said that there is no problem in continuing trade with India with local currency and money.

Besides, the country's currency yuan can be used in bilateral trade with China recently, the central bank of Bangladesh Bangladesh Bank has directed various commercial banks.

However, Bangladesh Bank Executive Director Sirajul Islam confirmed to Reuters that no formal decision has been made at the government level on whether the money and money will be used instead of dollars in trade with India.

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