With the declining value of its currency and a tightening economic situation, Bangladesh is looking to reduce its dependence on India for essential imports.
In the backdrop of growing tensions between India and Bangladesh, both countries’ currencies have witnessed a noticeable depreciation. The most significant change has been observed in the value of the Bangladeshi Taka, which has experienced a sharp decline against the Indian Rupee. As of December 7, 1 Indian Rupee was valued at 1 Bangladeshi Taka and 39 paisa. However, just a day later, on December 8, this exchange rate shifted. The value of the Bangladeshi Taka fell by 2 paisa against the Indian Rupee, with 1 Indian Rupee now being equivalent to 1 Bangladeshi Taka and 41 paisa. This depreciation comes amidst rising economic uncertainties and political tensions between the neighboring countries.
Value of 100 Indian Rupees: Currently, 100 Indian Rupees is equivalent to 141 Taka and 26 paisa in Bangladesh.
Bangladesh’s Shift in Trade Dependencies
With the declining value of its currency and a tightening economic situation, Bangladesh is looking to reduce its dependence on India for essential imports. Products like potatoes, onions, and other food items, which were traditionally imported from India, are now being sourced from other countries. Bangladesh is exploring new trade avenues to ensure its food security and manage its supply chain more effectively, reducing its reliance on its neighboring nation.
Current Exchange Rate and Economic Outlook
As of now, 100 Indian Rupees are worth approximately 141 Bangladeshi Taka and 26 paisa. The exchange rate reflects the challenges the Bangladeshi economy is currently facing, with the Taka depreciating and inflation increasing.
US urges India, Bangladesh to resolve differences peacefully
The United States has called for India and Bangladesh to resolve their differences through peaceful means, emphasizing the importance of dialogue and diplomacy. During a daily news briefing on Tuesday, State Department spokesperson Matthew Miller expressed the U.S. government’s desire to see both countries settle their issues amicably.
“We want to see all parties resolve their disagreements peacefully,” Miller stated, in response to a question about the recent visit of India’s Foreign Secretary Vikram Misri to Bangladesh.
Misri’s visit earlier this week was aimed at addressing various concerns between the two nations, including issues related to the safety and security of minorities in Bangladesh. While in Dhaka, Misri highlighted India’s willingness to collaborate with Bangladesh’s interim government and underscored New Delhi’s concerns regarding the treatment of minorities.
“I have underlined India’s desire to work closely with the interim government of Bangladesh. At the same time, we also had the opportunity to discuss certain recent developments and issues, and I conveyed our concerns, including those related to the safety and welfare of minorities,” Misri told reporters during the conclusion of his visit.