StanChart executes first INR-BDT import transaction for Unilever

Standard Chartered Bangladesh (SCB) has arranged the first Indian rupee (INR) denominated trade transaction to facilitate the import of Unilever Bangladesh Ltd (UBL), the largest multinational company operating in the fast-moving consumer goods (FMCG) sector.

The import transaction empowers UBL to offer INR payment options to the organisation's India-based suppliers.

"This will enable UBL to enjoy greater operational flexibility, while simultaneously aiding in brand enhancement and growth efforts. Access to direct invoicing facilities in INR also results in reduced costs and savings," said the SCB in a statement yesterday.

The British multinational bank said its global network and regional strength make it possible to offer seamless Bangladesh taka (BDT)-INR transactions and trade capabilities – accelerating bilateral trade between the two neighbouring countries.

SCB has not shared the amount of transactions.

SCB is one of the five banks that joined the foray into trade settlement in INR since Bangladesh and India launched the initiative to trade in INR to cut the dependence on the US dollar.

Since the rollout of the initiative in July 2023, five banks that include Sonali Bank, Eastern Bank, the State Bank of India (SBI), and Islami Bank Bangladesh received approval from the Bangladesh Bank to settle the bilateral trade with the neighbouring country in INR.

Under this mechanism, Indian exports and imports with Bangladesh amounting to about $16 billion can be invoiced, paid for, and settled in rupee.

Responses from businesses so far have been insignificant.

However, Naser Ezaz Bijoy, chief executive officer at SCB, said the INR holds great promise for exporters and importers. "We are pleased to be able to work towards building depth in the INR market with two-way trades," he said.

He said the market size of consumer goods in Bangladesh is approximately $3.6 billion with an annual growth rate of 9 percent.

"So, the successful execution of this INR-BDT import transaction sets a precedent for other companies – driving collective progress and advancement across one of our nation's most promising sectors. We are excited to learn from this opportunity and are proud to contribute to shaping the future of international trade."

Zaved Akhtar, chairman and managing director of UBL, said, "This will not only reduce the reliance on the dollar but also alleviate the pressure on Bangladesh's forex reserves."

"Through innovative macroeconomic strategies and partnerships like ours, the private sector will be able to support Bangladesh's long-term economic growth," he added.