Standard Chartered Bangladesh recently completed the first Indian rupee (INR)-denominated transaction for Walton Hi-Tech Industries PLC to facilitate refrigerator and freezer exports to India, reports BSS.
This milestone is also the first BDT-INR export transaction for Bangladesh's electronics industry, according to a press release issued on Monday.
The export transaction is the first cross-border trade transaction for StanChart 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 Group'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.
StanChart's global network and regional strength makes it possible to offer seamless BDT-INR transactions and trade capabilities, accelerating bilateral trade between the two countries.
StanChart CEO Naser Ezaz Bijoy 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 which bears tremendous potential for the future."
"We're proud to partner with Walton on this endeavour."
Walton Hi-Tech Industries managing director and CEO Golam Murshed said, "Currently, Bangladesh is using US dollar 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," Mr Murshed said, "Walton has begun INR-denominated exports to India."
Walton exports nearly INR 1.0 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, he mentioned.
"This will reduce dollar dependency and transaction settlement time. Additionally, importers and exporters from both countries will also benefit from avoiding double foreign exchange conversion."
Mr Bijoy and Mr Morshed inked the transaction agreement between StanChart and Walton on behalf of their respective organisations.
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