Muhith agrees to common trade currency (Indian Rupee) for India-BD trade

[neehar]

for those who are loosing sleep over this issue must know that this is in their interest too
The Telegraph - Calcutta (Kolkata) | Business | Case for rupee trade with Dhaka

 

[Skallagrim]

@iajdani, I think you got it wrong- it's not about common currency but about accepting INR instead of USD or any other hard currency for bilateral trade. Here BDT can't be considered because we have a trade deficit with India. As it's being discussed on the govt level we should discuss such things to learn about the pros and cons of such an arrangement.

 

[TopCat]

@iajdani, I think you got it wrong- it's not about common currency but about accepting INR instead of USD or any other hard currency for bilateral trade. Here BDT can't be considered because we have a trade deficit with India. As it's being discussed on the govt level we should discuss such things to learn about the pros and cons of such an arrangement.

Ok we import 5 billion dollar worth of Indian products equivalent to 30000 crore of Indian rupee. Where will we get all those Rupees from as we only export close to 1 billion dollar worth of product to India. Thats why we should use taka in trade as we have abundant of them and if we fell short we can always print more...

 

[Sugarcane]

why would BD print it?? they'll buy rupee from us instead of dollars from u.s."they" in my post is referd to our govt particulary RBI..i'll change it now

What they will give you to buy INR? BDT or USD?

Even if you exchange INR for BDT the exchange rate will be based on USD plus as there is huge trade deficit in favor of India means India will accumulate BDT. What you will do with these excess BDT?

 

[neehar]

What they will give you to buy INR? BDT or USD?

Even if you exchange INR for BDT the exchange rate will be based on USD plus as there is huge trade deficit in favor of India means India will accumulate BDT. What you will do with these excess BDT?

we'll buy dollars with their taka so that their money goes back in to their economy..or they may buy rupee directly with dollars.although first one is more likely. cant say with out knowing the contract.these are just negotiations nothing is solid yet..this is a common problem where ever trade deficit exits..like china is taking away thrice ur foreign reserves than they give you..but not always the situation remains the same..trade deficit is decreasing between the both as the demand in india is rising..besides using rupee means they can use their costly dollar reserves for trade with other countries

 

[Skallagrim]

Ok we import 5 billion dollar worth of Indian products equivalent to 30000 crore of Indian rupee. Where will we get all those Rupees from as we only export close to 1 billion dollar worth of product to India. Thats why we should use taka in trade as we have abundant of them and if we fell short we can always print more...

We'd have to pay the rest in dollars. India wouldn't accept BDT as the bilateral trade balance is in their favor (so they would fail to buy anything from us with BDT after a certain amount, i.e our total export to India).

 

[TopCat]

We'd have to pay the rest in dollars. India wouldn't accept BDT as the bilateral trade balance is in their favor (so they would fail to buy anything from us with BDT after a certain amount, i.e our total export to India).

I am in favor of paying the whole amount in BDT? When they are asking us to take Rupees, what stops you to ask them to accept BDT instead. Why are you so bend over? Are you born like that?

 

[Skallagrim]

I am in favor of paying the whole amount in BDT? When they are asking us to take Rupees, what stops you to ask them to accept BDT instead. Why are you so bend over? Are you born like that?

It's reasonable for them to ask us to accept INR, but it's not reasonable for us to ask them to accept BDT- simply because the bilateral trade deficit is in their favor. In a sense it's rather reasonable to ask the USA to accept BDT from us.

 

[TopCat]

It's reasonable for them to ask us to accept INR, but it's not reasonable for us to ask them to accept BDT- simply because the bilateral trade deficit is in their favor. In a sense it's rather reasonable to ask the USA to accept BDT from us.

INR is close to junk and its unreasonable to ask anybody to trade with INR.

 

[Lone]

It will only strengthen INR and further devalue TAKA. Given the current trade balance is hugely on indias side, we are going to lose more. How on earth this moronic finance minister and pm is going to approve this? It can only happen when the trade is more balanced and also TRUST is there.

 

[illusion8]

Don't tell me that you are going to allow BD to print INR

No worries - ISI printing presses will keep the supply of INR up to BD's requirements.

 

[Aka123]

Lets say if taka is used instead of Indian rupee, what can be the possible advantages and disadvantages for both India and Bangladesh?
Can anyone share some points on this.

 

[Sugarcane]

No worries - ISI printing presses will keep the supply of INR up to BD's requirements.

Your own corrupt officials and institutes are enough to fill demand, they will not give space to ISI

 

[illusion8]

Your own corrupt officials and institutes are enough to fill demand, they will not give space to ISI

of course, but ISI has a dedicated supply chain set up to supply Fake INR to BD and onwards to India - this makes it easier.

 

[Sugarcane]

Lets say if taka is used instead of Indian rupee, what can be the possible advantages and disadvantages for both India and Bangladesh?
Can anyone share some points on this.

Bangladesh is not in position to print BDT to meet demand i guess bilateral trade between both is about $5bl which is heavily in favor of India

of course, but ISI has a dedicated supply chain set up to supply Fake INR to BD and onwards to India - this makes it easier.

We love to help our brothers, problem?