Finance
Pranay Verma Indian rupee exchange will reduce dependence on reserves: Pranay Verma
Dhaka, July 12: Pranay Kumar Verma, the Indian High Commissioner appointed in Dhaka, said that Indian rupee exchange will reduce dependence on foreign exchange reserves.
He said tha the introduction of a new system for bilateral trade settlement in Indian rupees is the culmination of the efforts of the central banks of both countries. This will reduce the dependence on foreign exchange reserves for bilateral trade. It will also help reduce transaction costs and time, improve speed, efficiency and convenience of trade settlement and thereby increase competitiveness and overall trade volume.
The Indian High Commission and Bangladesh Bank on Tuesday organized a function to launch trade between India and Bangladesh in Indian Rupee (INR). The event was attended by senior officials of the Government of Bangladesh, members of banking/financial institutions, business community and media persons. The event was co-hosted by High Commissioner Prannoy Verma and Bangladesh Bank Governor Abdur Rauf Talukder.
The High Commissioner highlighted in his opening remarks that under the visionary leadership of Prime Minister Narendra Modi and Prime Minister Sheikh Hasina, India-Bangladesh relations had transformed significantly over the past decade and the most significant manifestation of that transformation was the visibly growing economic and trade ties between the two countries.
He also emphasized on the concerted efforts of the governments of both countries to find new ways to significantly expand bilateral trade relations and increase economic engagement. He acknowledged that the process was launched in response to long-standing demands from local businesses and, particularly in the context of the Comprehensive Economic Partnership Agreement (CEPA), has tremendous potential to boost bilateral trade in the long term, for which negotiations are expected to begin soon.
The Governor of Bangladesh Bank said that various countries of the world are struggling economically due to the increasing geo-political complexity. He emphasized that the introduction of India-Bangladesh trade in Indian Rupee (INR) would reduce these complications and open new avenues for commercial development. The Governor highlighted the benefits of this new system.
The Indian banks currently scheduled to participate in this new system from India are State Bank of India and ICICI Bank. The nominated Bangladeshi banks are Sonali Bank and Eastern Bank Limited. Every Bangladeshi bank scheduled for bilateral trade settlement in Indian Rupee (INR) shall open a Special Rupee Vostro Account (SVRA) in designated Indian banks.
