Bangladesh, India launch trade transactions in Re

Bangladesh and India launched the much-anticipated trade transaction in rupees, a move aimed at reducing dependence on the US dollar and strengthening regional currency and trade.

Bangladesh Bank governor Abdur Rouf Talukder described the start of trade settlement in rupees as the “first step in a great journey”.

He said transaction costs in trade with India would reduce with the introduction of the taka-rupee dual currency card which was “almost ready (to be) launched from September”.

Officials said under the formal arrangement, trade would be transacted in rupee and then gradually in Bangladeshi currency.

Banks in Bangladesh and India have been given permission to open nostro accounts, an account in a bank of another country for the purpose of foreign currency transactions. The exchange rate will be fixed in line with market demand and banks involved in the process.