India & Bangladesh to initiate trade in rupee this month

06 Jul '23

1 min read

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Insights

India and Bangladesh will start trading in rupee from July 11, with their central banks having made all arrangements.
Exporters in Bangladesh will get export proceeds in rupee and the equivalent amount will be used for import bill settlement.
Trading in taka will be launched later.
The Bangladesh Bank will launch a taka-rupee-based debit card in September.

Bangladesh and India will start trading in rupee this month, with their central banks having made all arrangements. Exporters in Bangladesh will get export proceeds in rupee starting July 11, and the equivalent amount will be used for import bill settlement.

Trading in taka will be launched later.

The move follows a Reserve Bank of India decision last year to allow the settlement of international trade in Indian currency.

Bangladesh’s Sonali Bank and Eastern Bank got approval from the Reserve Bank of India to open special accounts for rupee transactions.

The Bangladesh Bank has also decided to launch a taka-rupee-based debit card in September, aimed at saving US dollars. The card will allow users to make payments using taka and spend Indian rupees while travelling to India.

At present, Bangladesh exports are worth some $2 billion to India and imports are worth nearly $14 billion, official data show.

Fibre2Fashion News Desk (DS)

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