Two South Asian neighbours may soon phase out the dollar as an exchange currency. The main motive is to reduce trade costs and losses due to the spread between the rupee and the taka dollar.
The Daily Star of Bangladesh reports on February 24-25 show that the two countries’ most recent discussions occurred on the sidelines of the G20 CFO meeting held in Bangalore, southern India.
Bangladeshi residents spend around $2 billion on treatment, tourism and education, as shown in the report. And that’s why India is one of Bangladesh’s top three import destinations.
India-Bangladesh relationship: Dual currency cards could soon become a reality
As tourists from both countries travel with each other, they can use this card which can top up with Indian rupees or Bangladeshi Taka.
According to Bangladeshi media, the exchange rate will not be recalculated from the dollar exchange rate.
As per The Daily Star reports, this issue was raised at the meeting of the National Economic Council of Bangladesh chaired by Prime Minister Sheikh Hasina.
The Governor of Bangladesh Bank, Abdur Rouf Talukder, reports that this move will ease pressure on dollars due to the vast number of payments to India.
The dependence on reserves has significantly been reduced. Import bills have been reduced thanks to the control taken. For this reason, we can pay import bills with export earnings and remittances. But other dollar flows need to slow down.
The plan will be carried out on a trial basis before the process is formalized by the public sector banks of the two countries.
