New Delhi, July 12 (KNN) Bangladesh and India on Tuesday launched trade transaction in rupees to reduce dependency on the US dollar and make regional currency and trade stronger.

This marks Bangladesh’s first bilateral trade with a foreign country in addition to the US dollar. 

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

Speaking at the launch ceremony, Indian High Commissioner Pranay Verma said, “The trade position between India and Bangladesh has seen remarkable growth, with both countries benefiting from their economic cooperation.”

Bangladesh’s central bank governor said the transaction costs during 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 from now on initially, the trade would be transacted in rupee and then gradually in Bangladeshi currency Taka upon the trade gap between the two countries decreasing. 

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. 

Officials said the exchange rate will be determined in line with market demand and banks involved in the process.   (KNN Bureau)