India and Bangladesh will start trading rupees this month

Bangladesh and India will start trading in rupees this month after their central banks take full precautions. Exporters in Bangladesh will receive export proceeds in rupees from July 11 and the corresponding amount will be used to settle import invoices.

Trading in taka will start later.

The move follows a decision by the Reserve Bank of India last year to allow international trade to be settled in Indian currency.

Sonali Bank and Eastern Bank in Bangladesh have received approval from the Reserve Bank of India to open special accounts for rupee transactions.

Bangladesh Bank has also decided to launch a taka rupee based debit card in September to save US dollars. The card allows users to make payments in taka and spend Indian rupees while traveling to India.

According to official data, Bangladesh’s exports to India are currently around US$2 billion and imports nearly US$14 billion.

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