Trade arrangement in Rupee cuts transaction cost: BB

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A new era in currency diversification for

external trade began today as Bangladesh and India started formally trading

in rupees which is expected to reduce transaction cost benefitting the sides,

observed Bangladesh Bank (BB).

“Through the new arrangement, another currency has come in our trade which

will save huge amount of transaction cost. There will be an impact in product

price. The new arrangement is likely to help increase the country’s export,”

said BB spokesperson Mezbaul Haque at a press conference at the central bank

headquarters in the city.

BB organised the press conference marking the launching for settlement of

Bangladesh and India bilateral trade through Indian rupee (INR) in the city’s

Le Méridien hotel.

BB Governor Abdur Rouf Talukder attended the event as the chief guest while

Senior Secretary of the Commerce Ministry Tapan Kanti Ghosh, Indian High

Commissioner in Dhaka Pranay Verma and Federation of Bangladesh Chambers of

Commerce and Industry (FBCCI) President Jashim Uddin, among others, were

present.

Two export letters of credit from Bangladesh’s two businesses– Tamim Agro

and Shahjahan Mia– involving a total of 28 million Indian rupee and two

import LCs involving 12 million Indian rupee by Nita Company and Abdul Matlub

Ahmad were handed over by four participating banks– Sonali Bank, Eastern

Bank of Bangladesh and India’s State Bank of India and ICIC Bank– at the

event.

At the press conference, Mezbaul Haque said bilateral trade of different

countries is being settled through such kind of arrangement.

They have introduced such kind of settlement for reducing their transaction

cost, he added.

Source: Bangladesh Sangbad Sangstha