The proposed currency swap between Russia and Bangladesh so as to help maintain transactions worth around US $ 1 billion between the two countries — the implementation of the proposed currency swap means that Bangladeshi and Russian banks will be able to exchange Taka and Rouble to maintain bilateral trade, bypassing the traditional payment system that depends on a third currency — seems to be heading towards complications in view of the ongoing Russia-Ukraine conflict.
As per media reports, economists and bankers in Bangladesh have cautioned the Government should examine the political and trade implications of this deal considering Russia is now facing sanctions from the Western countries following its invasion of Ukraine.
According to the Chief Economist of the Bangladesh Bank, Habibur Rahman, the issue is highly sensitive with respect to the country’s foreign trade policy even if economists in general held any measure by a country undermining the bans on Russia exposes the country to risks of facing trade-related barriers from the Western nations, while World Bank Dhaka Office Chief Economist Zahid Hussain, reportedly, said, the Government should take a judicious decision on the proposed currency swap with Russia as Bangladesh’s overall external trade with the Western countries is way higher than that with Russia.
