Trade settlement between Bangladesh and India in Indian rupee began on Tuesday to reduce dependency on the dollar, transactional costs and time. We believe the two south Asian nations--Bangladesh and India will be working together as partners in order to achieve the desired benefit for them and bring peace and prosperity in the region as a whole.
Against the backdrop of global economic situation and Russia-Ukraine war, we think trading with India using rupee instead of US dollar will add new momentum to the economic ties between the two countries. Besides, this timely policy support will also reduce pressure to some extent on foreign exchange reserves for settlement of trade, while allowing some savings on exchange costs for traders.
It is a symbol of resilience of Bangladesh-India bilateral partnership, that the two nations are yet again adapting and leveraging opportunities to take their relationship and their economies forward through this innovative arrangement. Bilateral trade settlement in rupee entails each of the designated Bangladeshi banks opening a Special Rupee Vostro Account (SRVA) with the designated Indian banks. Therefore, this is also a reflection of the commitment to shared growth and shared prosperity.
India, with its diverse
market, has emerged as
the top export destination
for Bangladesh in Asia
India-Bangladesh relations have transformed significantly over the last decade under the visionary leadership of Indian Prime Minister Narendra Modi and Bangladeshi Prime Minister Sheikh Hasina. And one of the most important manifestations of that transformation is our visibly growing economic and commercial ties and connectivity links.
Bangladesh is India’s biggest trade partner in South Asia, and fifth largest globally. In the last five years, bilateral trade has more than doubled. Bangladesh’s exports to India have consistently crossed the one billion dollar mark consecutively over the last three years. In the last financial year, it crossed two billion dollars for the first time.
India, with its diverse market, has emerged as the top export destination for Bangladesh in Asia. We believe India would continue to walk step by step with Bangladesh to help it achieve the desired progress, stability and prosperity.
Apart from these, to keep the spirit of 1971 alive, it is also very necessary that the two countries face such forces together, who want to attack our mutual trust. Since Bangladesh’s Liberation War in 1971, the two countries shared history and culture, mutual trust and respect, longstanding friendship and continued cooperation.
The relationship between the two nations is “written with blood” and it has reached a new height under the dynamic leadership of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman’s daughter Sheikh Hasina. Therefore, it is expected that this bonding of friendship and fraternity between Bangladesh and India will be further strengthened in the days to come by launching bilateral trade through Indian rupee.
