Bangladeshi businesses won’t be able to use Indian Rupee for foreign trade as Bangladesh Bank (BB) is yet to enlist Rupee to settle letters of credit (LC).
BB spokesperson and executive director Md Serajul Islam said that the central bank is yet to enlist Rupee for foreign trade.
He said that BB is reviewing the currency diversification in foreign trade to reduce the sole dependency on US dollar, reports UNB.
Before allowing any foreign currency for trading the central bank has to maintain an exchange stander, and stability in line with the IMF standard, he said.
The businesses said if trade between Bangladesh and India take place in local currencies, pressure from falling US dollar reserves and ongoing forex market volatility would be reduced to some extent.
They said India is the second largest source of imports of raw materials and other goods and services for Bangladesh. Industrial raw materials, capital machinery, cotton, yarn, fabrics, and chemicals worth $16.19 billion were imported in the fiscal year 2021-22.
At the same time, Bangladesh exported goods worth $2.0 billion to the neighbouring country.
On September 15, the BB allowed the banks to open accounts in the Chinese currency Yuan.
IMF recognised five countries’ currencies as high-value currencies. Yuan was recognised as the IMF's high-value currency basket in 2016. Since then, Yuan has become stronger than ever as per a currency review by the IMF.