De-dollarization: Bangladeshi banks to offer trade transactions in Indian rupees as reserves fall

News Snapshot:

Two Bangladeshi banks plan to launch trade transactions denominated in Indian rupees as the South Asian country seeks to increase its forex reserves and lessen its dependency on dollars. Until now, Bangladesh has only carried out trade transactions in dollars. On July 11, Eastern Bank, which opened rupee accounts with the State Bank of India and ICICI Bank, announced its plan for trading in rupee. Sonali Bank, a state-owned lender in Bangladesh, also offers the same service. A nostro account refers to an account a bank holds abroad at another bank in the currency of that jurisdiction. Such accounts are...