Trading in local currencies will strengthen SAARC economies

Bangladesh Bank Governor Abdur Rauf Talukder said on Friday that trading in local currencies within the SAARC region will strengthen the economies of these countries while offering immense potential for economic stability, growth, and regional cooperation.

He noted that it is possible to pave the way for more resilient and integrated regional economies through collaborative efforts, policy innovation, and strategic agreements for the introduction of local currencies.

The governor was addressing the seminar "Trading in Local Currencies: Problems and Prospects for the SAARC Countries" as the chief guest, organised by the BB at the Radisson Blu Chattogram Bay View hotel in the port city of Chattogram.

Reserve Bank of India Chief General Manager Aditya Gaiha, Finance Secretary Dr Md Khairuzzaman Mozumder, BB Deputy Governor Dr Md Habibur Rahman, and Executive Director Sayera Younus spoke as special guests at the seminar.

The BB governor said that the US dollar has long dominated international trade, with about 40% of trades transacted through this currency.

"However, in light of geopolitical tensions, economic sanctions, and imbalances, many countries are seeking alternatives to avoid reliance on a single currency," he said.

"In this context, the stability and convertibility of the local currency should be ensured, and the trade balance should be maintained," Rauf concluded.