Standard Chartered Bangladesh (SCB) has orchestrated the inaugural Indian rupee (INR) denominated trade transaction to enable the import of Unilever Bangladesh Ltd (UBL), the largest multinational corporation operating in the fast-moving consumer goods (FMCG) sector.
This transaction equips UBL with INR payment alternatives for its suppliers based in India.
According to SCB’s statement yesterday, this initiative grants UBL greater operational flexibility, contributing to brand enhancement and growth endeavors. Direct invoicing facilities in INR also lead to cost reduction and savings.
The British multinational bank highlights its global network and regional strength, which facilitate seamless Bangladesh taka (BDT)-INR transactions and trade capabilities, thereby expediting bilateral trade between the neighboring countries.
Read more: Are AI-powered marketing tools revolutionizing the market?
Although SCB has not disclosed the transaction amount, it is among the five banks venturing into trade settlement in INR since the launch of the initiative by Bangladesh and India to reduce dependence on the US dollar.
Since its inception in July 2023, five banks, including Sonali Bank, Eastern Bank, the State Bank of India (SBI), and Islami Bank Bangladesh, have received approval from the Bangladesh Bank to settle bilateral trade with India in INR.
Read more: Top 10 Startups in Bangladesh
Under this mechanism, Indian exports and imports with Bangladesh, totaling about $16 billion, can be invoiced, paid for, and settled in rupees.
Initial responses from businesses have been modest. However, Naser Ezaz Bijoy, CEO at SCB, emphasizes the promising potential of INR for exporters and importers. He expresses satisfaction in contributing to building depth in the INR market through two-way trades.
Bijoy points out that the consumer goods market in Bangladesh amounts to approximately $3.6 billion with an annual growth rate of 9 percent. Thus, the successful execution of the INR-BDT import transaction sets a precedent for other companies, fostering collective progress in one of Bangladesh’s most promising sectors.
Read more: Syed Mahbubur Rahman, MD and CEO of MTB, Receives ‘Best Transformational Leader’ Award
Zaved Akhtar, chairman and managing director of UBL, emphasizes that this initiative will not only reduce reliance on the dollar but also alleviate pressure on Bangladesh’s forex reserves. He underscores the importance of innovative macroeconomic strategies and partnerships in supporting Bangladesh’s long-term economic growth.
