Thread by @Ninja0179048354

#Dedollarization Continues

🇧🇩 & 🇮🇳 to trade in National Currencies

🇧🇩 & 🇮🇳 have decided to ditch the 🇺🇸 dollar & conduct bilateral trade settlements in their currencies, a 🇧🇩 Bank official told

This decision was made due to foreign currency liquidity issues faced by 🇧🇩, which disrupt the flow of imports into the country.

The move would also cut a number of costs associated with using the US dollar, replacing it with Indian rupees & Bangladeshi taka.

Part of the cost-cutting benefits comes from avoiding currency conversions that has to be done several times in traditional settlements, said #MezbaulHaque, executive director of 🇧🇩 Bank

"Such a decision will cut the cost of biz, speed up transactions, & boost regional trading"

The de-dollarization process would start in June, as banks in 🇮🇳 & 🇧🇩 are already opening transacting accounts to their partners to facilitate settlements, according to #Haque

Numerous countries have recently begun actively substituting the use of the greenback settle bilateral trade transactions. 🇦🇷 and 🇧🇷 have decided to pay for 🇨🇳 imports in the yuan, 🇰🇪 is paying for Saudi Arabia's oil in shillings, while 🇷🇺 accepts payment for gas only in rubles.

The #BRICS nations also plan to discuss at the summer summit the issuance of a bloc-wide currency to substitute the US dollar.