Reports claimed this citing the sources, while adding that launched on June 11, 2023, the initiative aimed to lessen dependence on the US dollar and enhance regional currency and trade integration.
However, as of January 30, 2024, the trade volume stood at ₹38.44 million, equivalent to $0.46 million.
Despite engagement from three banks—Eastern Bank, State Bank of India, and Standard Chartered Bank—multiple factors like dollar dominance, LC complexities, and exchange-rate volatility have hindered the initiative’s success.
Md Mezbaul Haque, spokesperson for Bangladesh Bank, acknowledged the slow progress, attributing it to businesses’ reluctance to seize the opportunity due to back-to-back LC issues.
Despite challenges, stakeholders remained optimistic about the initiative’s potential to attract attention once operational hurdles are addressed.
Abdul Matlub Ahmad, president of the India-Bangladesh Chamber of Commerce and Industry, highlighted the preference for the US dollar among Bangladeshi exporters even as he advocated for using Bangladeshi Taka in bilateral trade to address the trade imbalances.
Dr. Mohammad Abdur Razzaque emphasised the significant contribution of the readymade garment sector to Bangladesh’s exports to India, noting challenges associated with settling orders in the Indian currency due to the dollar’s dominance in global trade.
Despite challenges, bilateral trade between India and Bangladesh stood at $13.64 billion in the financial year 2022-2023, with Bangladesh’s exports amounting to $2.44 billion and imports totalling $7.52 billion.
Fibre2Fashion News Desk (DR)