Bangladesh China Trade: Money Is Falling, Bangladesh Close To China In Dollar Thinking?

Bangladesh economy: Bangladesh’s economic development is falling short. International recognition is also increasing in the fleet. But the state of the world market is not good, its impact is understood in more or less all countries. Rampant commodity prices are also destabilizing the domestic economy. Sri Lanka, Pakistan are not individually noteworthy. However, as an example of the developing economy of South Asia, it has always been noted that India also has a thought on the forehead of economic experts. The decline of the rupee to the dollar cannot be stopped in neighboring countries. Pretty much the same situation in Dhaka. Because not only in India but also in Bangladesh (Bangladesh) the dollar is high enough. Which has a direct impact on the country’s trade deficit. Which increases the damage to the economy. And at the end of the balance of the situation, Dhaka is forced to ignore education because of the collapsed economy of Sri Lanka due to the Chinese debt.

Here again the decrease is Rs

And how much lower? This is the question that now revolves around the price of rupees across India. Neighboring Bangladesh is not far behind. The Bangladeshi rupee has fallen by at least 25% against the dollar since the Ukraine-Russia war. And fears of a recession have increased. It should be noted that the problem of price increases in Asia is assuming terrible proportions. Sheikh Hasina’s government has already been targeted by the opposition because of the rise in food prices. Meanwhile, Prime Minister Hasina recently sought financial aid from the IMF, as well as the poison on God. It served as fuel for the fire of the opposition movement.

The desire of the dollar, enthusiasm in Yuan (Yuan)!

-yuan

Since mid-September, the Central Bank of Bangladesh has announced a major change in the rules governing international trade transactions – Bangladesh Bank. What changes to that rule? Bangladesh Bank has allowed transactions not only in dollars but also in Yuan (Chinese currency) during international trade. This special concession has been given in particular in the case of trade with China. The central bank said in a statement: “To increase trading potential, the yuan can be deposited in branch accounts needed for international trade.” couch off Bangladesh Bangladesh-China Chamber of Commerce welcomed this decision. According to Mamun Mridha, co-secretary of the organization, “This has been requested for a long time. This decision to recognize the yuan in trade with China will be very beneficial.”

Graphic courtesy: Varani Sahu.

Yuan welcome?

According to a group of economic experts, Bangladeshi businessmen do not have to pay a conversion fee for using yuan in transactions with China. In addition, Dhaka will have the opportunity to reduce the cost of imports from Beijing by at least 10%.

Read more: India’s plan to bring Chinese companies to India for 100 lakh crore rupees

And China?

Although Dhaka allows the use of yuan in trade, Dhaka wants to be careful in its commercial relations with Beijing, keeping an eye on every issue. Foreign experts believe there are three main reasons for this:

  • Ukraine Russia post-war geopolitical situation.
  • Sri Lanka’s economy is collapsing due to Chinese debt.
  • neighbour Relations with India and security issues.

For that reason, the government of Sheikh Hasina has returned Chinese aid to the Dhaka-Chittagong High-Speed ​​Rail project.

Read more: Dhaka to Bangkok, Chittagong to Kolkata – Two new flights started in Bangladesh

Bangladeshi-Chinese trade

According to various reports, Bangladesh imports $15-16 billion annually from China. And exports? Although there is a haze, according to media reports, it is not more than $1 billion. However, China’s ambassador to Dhaka, Li Zimling, said in an interview that $25 billion worth of goods has recently been exported from Bangladesh to China.

Yuan had to escape the fear of the dollar. Bangladesh-China will get closer? Will Delhi shut up? What do you think? Chat with us. Reply in English or Bengali in the comment box below.

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