India’s top lender, the State Bank of India has asked exporters to avoid settling deals with Bangladesh in the dollar and other major currencies as it looks to curb exposure to Dhaka's falling reserves.
According to reuters.com, Bangladesh's $416-billion economy is battling rising prices of energy and food as the Russia-Ukraine conflict widens its current account deficit, and dwindling foreign exchange forces it to turn to global lenders such as the International Monetary Fund.
"The country is facing a shortage of foreign currency due to higher import bills and weaknesses of the Bangladeshi taka against the dollar in recent times," the SBI said in a letter sent to its branches.
Pakistan’s currency problem
At the same time, Pakistan’s currency is on the cusp of a record low, as billions of dollars of promised aid from the Middle East to bolster the hard-hit South Asian nation’s finances have not yet arrived. The rupee is about 0.4% away from 240.375 per dollar, the all-time low it reached earlier this year. The currency is among the worst performers globally in September, having fallen more than 8%.
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