Standard Chartered Bangladesh recently completed the first Indian Rupee (INR) denominated trade transaction for Walton Hi-Tech Industries PLC, a concern of the Walton Group, to facilitate refrigerator and freezer exports to India.
This milestone is also the first BDT-INR export transaction for Bangladesh's electronics industry, said a press release today (Monday).
The export transaction is the first cross-border trade transaction for Standard Chartered Bangladesh to have been settled in each nation's respective local currencies - opening up a new avenue for currency diversification.
The ability to offer payment options in Indian Rupees to Walton Hi-Tech Industries PLC's India-based customers allows the organisation greater operational flexibility and simultaneously assists in the conglomerate's brand enhancement and the country's overall export diversification objectives.
Access to direct invoicing facilities in INR also results in reduced costs and savings. Standard Chartered's global network and regional strength make it possible to offer seamless BDT-INR transactions and trade capabilities, accelerating bilateral trade between the two countries.
Naser Ezaz Bijoy, chief executive officer at Standard Chartered Bangladesh, said, "Today's event is a symbol of inspiration, collaboration, innovation and a matter of pride for the nation. Whilst this will have the benefits of simplified conversion, faster transaction timelines, this is a start that bears tremendous potential for the future. We are proud to partner with Walton on this endeavour."
Golam Murshed, managing director and chief executive officer at Walton Hi-Tech Industries PLC, said "Currently Bangladesh is using US dollars to settle international trade transactions. To help alleviate the current liquidity situation and reduce dependency on the US dollar, Bangladesh and India have initiated bilateral trade settlement in their respective local currencies. To further this initiative, Walton has begun INR-denominated exports to India."
He added "Walton exports close to INR 1 billion worth of fridges, compressors, fans, and other goods to India annually. Bangladesh can settle import payments in INR from India up to the same amount using Walton's export proceeds. This will reduce US dollar dependency and transaction settlement time. Additionally, importers and exporters from both countries will also benefit from avoiding double foreign exchange conversion."
The transaction agreement between Standard Chartered and Walton Hi-Tech Industries PLC was signed by Naser Ezaz Bijoy, chief executive officer of Standard Chartered Bangladesh, and Golam Morshed, managing director and chief executive officer of Walton Hi-Tech Industries PLC.