Trading in rupees to reduce conversion loss: Indian high commissioner

The new rupee trade regime will reduce the loss that takes place while trading in dollars because of multiple conversions, Indian High Commissioner to Bangladesh Pranay Verma has said.
 
The facility allowing business transactions between India and Bangladesh using rupees will facilitate greater trade competitiveness, said Pranay Verma at an event celebrating the first successful rupee trade settlement of EBL for Habiganj Agro Limited, a concern of Pran RFL Group.
 
At the ceremony in the EBL head office in the capital, bank officials said Habiganj Agro's import and export settlement in rupees involved over 2.4 million rupees, setting the stage for a new era in economic and commercial collaboration between Bangladesh and India.
 
"India is our long-trusted friend and an important development partner. This is the first time Bangladesh has done bilateral trade with a foreign currency in addition to the US dollar. I think this is a major step in a great journey in bilateral trade relations," said Commerce Minister Tipu Munshi on the occasion.
 
Ali Reza Iftekhar, managing director of EBL, said, "In a significant move earlier this year, the trade settlement mechanism in rupee was launched on 11 July. This landmark initiative signifies the beginning of a transformative chapter in the economic and commercial partnership between Bangladesh and India.
 
"The purpose of this mechanism is to alleviate pressure on Bangladesh's foreign exchange reserves and reduce transaction costs, ensuring a smoother and more efficient trade process."
 
Abdul Matlub Ahmad, president of the India-Bangladesh Chamber of Commerce and Industry, said, "Bangladesh exports goods valued at approximately $2 billion to India and imports products worth around $14 billion.
 
"The newly established trade regime is designed to mitigate losses incurred due to multiple currency conversions while trading in dollars, ultimately enhancing trade competitiveness."
 
He called for introducing the taka into the mechanism of trade settlement.
 
Zakir Hossain Chowdhury, executive director of the Bangladesh Bank, said, "India is a large trade partner of Bangladesh. I believe this rupee trade opportunity will boost our exports to India. Recently, permission was given to Islami Bank for a rupee trade settlement. More banks will be given permission soon."
 
Ahmed Shaheen, additional managing director of EBL, said, "With this small step of invoicing and settlement in local and regional currency, we started moving towards a far-reaching potential of ease, competitiveness and increased bilateral trade." ***