Bangladesh Enters the Era of Trade with India in Indian Rupees

Bangladesh has entered the era of trade with India in Indian Rupees. A formal announcement was made at an event in the La Meridien Hotel in Dhaka, with officials from both countries. The two neighbors have taken this initiative to reduce their dependence on the dollar.

The Event and Letter of Credit

On Tuesday (July 11th), Letters of Credit (LCs) were handed over to Bangladeshi traders, including Tamim Agro and Shah Jahan Mia. Sonali Bank, Eastern Bank, and Indian State Bank and ICICI Bank presented the LCs to importers and exporters.

Key Attendees

The event was attended by Bangladesh Bank Governor Abdur Rouf Talukdar and the Indian High Commissioner in Bangladesh, Pinat Kumar Verma. Abdur Rouf Talukdar stated, **“India is Bangladesh’s largest trade partner. We import goods worth $1,440 billion from India annually, and export goods worth $200 billion to India.”**

He also mentioned the possibility of launching ‘Rupee Cards’ in September, for the convenience of Bangladeshi citizens traveling to India. **“These cards will allow for bill payments both at home and in neighboring India.”**

Statements from Key Figures

Indian High Commissioner Pinat Kumar Verma said, **“From today, a new advantage has been introduced in the bilateral trade between India and Bangladesh. I believe both countries will benefit from this method.”**

Additional speeches were delivered by the Managing Director (MD) of Sonali Bank, Afzal Karim, the MD of Eastern Bank, Ali Reza Iftekhar, the Secretary of the Ministry of Finance, Sheikh Mo. Salimullah, the Chairman of BIDA, Lokman Hossain Mia, the Secretary of Commerce, Tapon Kanti Ghosh, the President of FBCCI, Mr. Jasim Uddin, the President of India-Bangladesh Chamber of Commerce and Industry, Abdul Matlub Ahmed, and the President of BGMEA, Faruque Hassan.

Organizations Involved

The opening event was jointly organized by Bangladesh Bank and the High Commission of India in Dhaka. Sonali Bank and Eastern Bank of Bangladesh, and the State Bank of India and ICICI Bank of India are responsible for facilitating trade in rupees between the two countries.

Analysis and Implications

Analysts believe this initiative will provide some relief to importers in the country. They will be able to open LCs to purchase goods from neighboring countries in rupees, which will reduce the use of dollars.

Bangladesh Bank has already granted Sonali Bank, Eastern Bank and the State Bank of India (SBI) permission to open Nostro Accounts with their partners in the neighboring country.

Message World/ JI