In a development that is expected to bring down the cost of trade as well as the conversion rate losses for businesses as well as people in general, next-door neighbours India and Bangladesh are in talks about doing away with the dollar as the official currency for payments between the two countries.
Reports claimed this adding the discussion to this end took place on the sidelines of the G20 Finance Ministers and Central Bank Governors meeting held on 24th – 25th February, in Bengaluru, India.
At the meeting, Bangladesh Bank Governor Abdur Rouf Talukder reportedly maintained such an arrangement would also alleviate the pressure on foreign currency given the large volume of payments to India even as, on the other hand for Indian businesses, this arrangement would mean they would get their bills cleared faster as no dollars would be involved.