Bangladesh, India to use taka, rupee for trade transactions from Sept

A silent revolution is underway, as Bangladesh and India are going to start using their respective currencies, the taka and the rupee, for trade transactions from September 2023, reports UNB.
At the same time, Bangladesh Bank will introduce a debit card called 'Taka Pay Card' through which people can withdraw taka or rupee. People who travel to India will get the facility of paying through this card, said the central bank Governor Abdur Rouf Talukder recently.
People going for treatment, students and businessmen will benefit from this system and they can avoid using the US dollar, he said.
From September, India and Bangladesh will open LCs for import and export, using Indian rupee and Bangladeshi taka.
Until now, taka is converted into dollar, and that was converted again into rupee; and the same was done with rupee.
As a result, Bangladeshi and Indian citizens are losing at least six per cent of rupee or taka. As the new system provides for the direct rupee-to-taka and taka-to-rupee conversion, no party will be affected, Bangladesh Bank sources said.
The offer came from the Government of India, and Bangladesh accepted it. This will eliminate the use of US dollar for trade and personal travel purposes.