Muhith agrees to common trade currency (Indian Rupee) for India-BD trade

[TopCat]

Wrong. To the extent of rupess BD earns with exports to India it will pay to India directly without buying dollars with them, which means you will save on exchange rate(no need to convert TAKA to dollars) there. INR will not strengthen against TAKA. Both INR and TAKA will strengthen against dollar. The trade gap between India and BD can be paid with dollars like they do now.

Why not just accept Taka man.. we have plenty of them and we print a lot every year even we can increase production rate of Taka to meet our Indian imports.. win win for both

 

[rubyjackass]

Why not just accept Taka man.. we have plenty of them and we print a lot every year even we can increase production rate of Taka to meet our Indian imports.. win win for both

That is not a win for India for obvious reasons. Currently dollars come to India from BD by trade and go to BD from India by investment. When the investment climate in BD cools down, suddenly India has billions of TAKA without knowing what to do with them. Also, it is common sense that the net importer should be worried about its dollar exchange rate more, not the other way round(because they convert more of their money into dollars).