We, at Real News Cast, are excited to report on the recent developments in the economic ties between India and Bangladesh. In a significant move, the two countries have decided to shift away from using the US dollar in bilateral trade and investment. This strategic move is expected to bring about several advantages for both countries and help strengthen their economic relationship.
The decision to ditch the dollar was made during a meeting between Indian Prime Minister Narendra Modi and his Bangladeshi counterpart Sheikh Hasina in Dhaka. The two leaders also signed several agreements, including a memorandum of understanding (MoU) for the supply of liquefied petroleum gas (LPG) from Bangladesh to India.
India and Bangladesh have historically shared strong cultural, linguistic, and economic ties. In recent years, the two countries have made significant progress in strengthening their trade and investment relationship. Bilateral trade between India and Bangladesh has grown significantly, from $7 billion in 2016-17 to $10 billion in 2019-20.
The decision to shift away from using the US dollar in bilateral trade is expected to have several benefits for both countries. Firstly, it will reduce their dependence on foreign currency and enhance their financial sovereignty. Secondly, it will help reduce transaction costs, as the use of the US dollar involves additional fees and charges. Thirdly, it will promote the use of their own currencies, the Indian rupee and the Bangladeshi taka, in bilateral trade and investment.
The move away from the US dollar is also expected to enhance the economic ties between India and Bangladesh. The use of local currencies in bilateral trade is likely to increase cross-border investments, as it reduces the risks associated with currency fluctuations. It is expected to boost trade in agricultural commodities, textiles, and other manufactured goods. The use of local currencies is also expected to increase the flow of remittances between the two countries.
Moreover, the decision to supply LPG from Bangladesh to India is expected to provide a significant boost to the energy sector of both countries. India is the world’s third-largest energy consumer, and the demand for LPG is expected to increase significantly in the coming years. Bangladesh has significant reserves of LPG, and the supply of LPG from Bangladesh to India is expected to provide a reliable and cost-effective source of energy to India.
In conclusion, the decision by India and Bangladesh to move away from using the US dollar in bilateral trade and investment is a strategic move that is expected to have several benefits for both countries. It will reduce their dependence on a foreign currency, enhance their financial sovereignty, reduce transaction costs, promote the use of their own currencies, and enhance their economic ties. The supply of LPG from Bangladesh to India is also expected to provide a significant boost to the energy sector of both countries. We look forward to seeing the positive impact of these developments in the years to come.
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