Russia-Ukraine war is immediately after the corona pandemic. The economy is tight all over the world. Because of these two reasons, food and fuel prices have increased across the world. This price is settled in dollars. Developing and poor countries of the world have to put their hands on foreign currency reserves, especially dollars, to pay this additional price. There is also a dollar crisis. As a result of this, these countries are facing the risk of serious economic imbalance.
Already, Sri Lanka has declared itself bankrupt, and one of its neighboring countries, Pakistan, is also depleting its dollar reserves, and the economic crisis is becoming serious.
Over the situation, India's top bank and lender State Bank of India (SBI) has proposed to use rupees and taka instead of dollars in India's bilateral trade with Bangladesh to avoid a possible disaster in this situation.
On August 24, a letter was sent from the SBI headquarters to various branches of the bank. The letter said, 'India's domestic reserves are under pressure due to rising import costs. In this situation, it can be considered whether the currencies of the two countries, rupees and taka, can be used in bilateral trade with Bangladesh.
Last year, Bangladesh had 48 billion dollars in reserves. But that stockpile is now down to $37 billion due to higher import-related costs. The government of Bangladesh has already asked for a loan of 4.5 billion dollars from the international lending organization IMF to protect the economic balance.
Therefore, in the changed situation, there is a glimpse that Bangladesh is also considering the issue of trade with its largest trading partner India in rupees and taka instead of dollars. At an event in Dhaka last week, Commerce Minister Tipu Munshi said there is no problem in continuing trade with India in the local currency rupee and taka.
Besides, the central bank of Bangladesh Bangladesh Bank has also given instructions to various commercial banks that the currency of the country can be used in bilateral trade with China.
However, Bangladesh Bank Executive Director Sirajul Islam confirmed to Reuters that no official decision has been taken at the government level on whether rupees and taka will be used instead of dollars in trade with India.
Sources : Reuters