Bangladesh and India will begin trading in their own local currencies, cutting US Dollar dominance over the two. The decision to trade exclusively in Rupee and Taka is meant to boost regional trade while reducing business costs. That is according to a Bangladesh Bank (BB) official.

The two countries can now directly exchange import and export prices using the taka and rupee, tossing aside the US Dollar. Officials in both countries say that this new way of transaction will fuel hopes of reducing pressure on dollar reserves as well as cutting trade costs.

India and Bangladesh are not the only two countries in the region, let alone the world, who are looking to cut down US Dollar dominance. India, being a part of the BRICS Alliance, and Bangladesh looking to join the BRICS Nations, both have shown interest in de-dollarization efforts. Engaging in trade in their own currencies will only fuel those efforts.

While India is already a member of BRICS (The I), Bangladesh is still looking to have its application approved. More and more nations are showing interest in BRICS and its mission, as well as looking to cast a shadow over the US Dollar. The two nations agreeing to trade in Rupee and Taka not only coincides with the de-dollarization mission but may also aid Bangladesh’s efforts to join BRICS come the summit in August.

Bangladesh and India will begin trading in their own local currencies, cutting US Dollar dominance over the two. The decision to trade exclusively in Rupee and Taka is meant to boost regional trade while reducing business costs. That is according to a Bangladesh Bank (BB) official.

The two countries can now directly exchange import and export prices using the taka and rupee, tossing aside the US Dollar. Officials in both countries say that this new way of transaction will fuel hopes of reducing pressure on dollar reserves as well as cutting trade costs.

India and Bangladesh are not the only two countries in the region, let alone the world, who are looking to cut down US Dollar dominance. India, being a part of the BRICS Alliance, and Bangladesh looking to join the BRICS Nations, both have shown interest in de-dollarization efforts. Engaging in trade in their own currencies will only fuel those efforts.

While India is already a member of BRICS (The I), Bangladesh is still looking to have its application approved. More and more nations are showing interest in BRICS and its mission, as well as looking to cast a shadow over the US Dollar. The two nations agreeing to trade in Rupee and Taka not only coincides with the de-dollarization mission but may also aid Bangladesh’s efforts to join BRICS come the summit in August.