Speakers at a seminar on Friday observed that trade in local currencies among the SAARC countries has immense potential for economic stability, growth and regional cooperation.
They said collaborative efforts, policy innovation and strategic agreements on local currencies can pave the way for more resilient and integrated regional economies. Therefore, trading in local currency in SAARC countries will strengthen the economy.
The seminar on ‘Trading in local Currencies: Problems and Prospects for the SAARC Countries’ was organised by Bangladesh Bank at Radisson Blu Mohana ballroom in the city on Friday.
Bangladesh Bank Governor Abdur Rauf Talukder attended the seminar as the chief guest while Chief General Manager of Reserve Bank of India Aditya Gayha, Secretary of the Ministry of Finance Md Khairuzzaman Majumdar, Deputy Governor of Bangladesh Bank Md. Habibur Rahman, Executive Director Saira Yunus spoke as special guests in the event.
Senior officials from Bangladesh Bank and other Commercials were present in the seminar. Abdur Rauf Talukder said that the US dollar has been dominant in international trade for a long time. About 40 percent of trade is transacted through this currency, but due to geopolitical tensions, economic sanctions and imbalances, many countries are scrambling to find alternatives to relying on a single currency.
He said that the dependence on the US economy will be reduced if transactions are done in local currency among the SAARC countries. This will increase economic stability among member countries and reduce exchange risk and transaction costs. By trading in our own currency we can strengthen our economy. Local trade has many challenges. Among them, the main challenge is to establish strong bilateral agreements and cooperation frameworks among the participating countries. In that case, the stability and convertibility of the local currency should be ensured and trade balance should be maintained, he added.
