Bangladesh threw away the dollar..!?

When the dollar was dominant in international trade, every country used to convert its own currency into dollars for its exports and imports. Due to this, the demand for the dollar increased and the value of other currencies began to fall. This situation has been reversed after the Russia-Ukraine war. First, the Russian government allowed china and india to pay for the crude oil it sold in yuan and rupees. Through this, russia can break international economic barriers and continue to trade with the countries of the world. While this has benefited russia in a big way, it has given this privilege not only to india and china but to all the countries it exports to. Later it also offered the world countries to make payments in the currency of their choice.
Following this, bangladesh has now decided to pay its trade balances between russia and china in Chinese yuan instead of dollars. According to this, the 110 million dollars owed to the Rooppur power plant under construction in bangladesh will be paid in yuan currency. Bangladesh's announcement comes at a time when de-dollarisation efforts by developing countries are intensifying and BRICS countries are trying to implement a common BRICS currency exchange. The US-led G7 countries have stood by ukraine while imposing economic sanctions on Russia. Because of this, russia is completely banned from the international banking system.De-Dollarisation efforts are the plan russia has come up with after months of fighting for a payment system. As part of this, russia accepts payment in local currency. A high-level committee of russia and Bangladesh's finance ministry agreed last week that payments could be made in the yuan currency. Uttam Kumar Karmakar, Additional Secretary, Economic Relations Division (ERD), bangladesh Ministry of Finance, said that due to sanctions against Russian banks, we are unable to pay in US dollars. russia asked us to pay in rubles, their currency, but that was not possible, so we opted for the yuan currency, he said.

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Sowmiya Sriram

18/04/2023 10:05 PM