Muhith calls for common currency in South Asia

Finance Minister AMA Muhith yesterday strongly supported the idea of introducing a common currency in South Asia for boosting regional trade.
He said the countries could embrace a common currency without getting all the other macro parameters in order as all of them (countries) are less sophisticated economies.
Even if all the Saarc (South Asian Association for Regional Cooperation) member countries do not agree with the idea, two or three nations could join hands and introduce the system, observed Muhith.
He was speaking at a seminar styled "Boosting Sub-Regional Development through Increased Investment and Trade." Confederation of Indian Industry (CII) organised the event at its headquarters in New Delhi.
The minister is now in the Indian capital to attend the 46th annual meeting of the Asian Development Bank.
His suggestion came after former CII president Shekhar Datta said at least Bangladesh and India should think of introducing a common currency for boosting trade and investment between the two countries.
Muhith also stressed the need for greater integration among sub-regional economies for further expansion in trade, as the current intra-regional trade accounts for less than five percent.
"Particularly, if we had an intra-regional market during the last financial crisis, perhaps we would have been protected in a better way, the way the ASEAN and Latin America have been protected," he mentioned.
"This is a lesson we must learn from the last financial crisis and we must move towards much better integration of regional economy."
On providing transit facility to India, Muhith identified Bangladesh's insufficient infrastructure as a key bottleneck. “It [transit] is an accepted issue in Bangladesh, but the infrastructure deficit is now a major problem,” he added.
Bangladesh Bank Governor Atiur Rahman urged the Indian entrepreneurs to avail the lucrative investment opportunities in Bangladesh.
“Bangladesh's FDI [foreign direct investment] policy regime is among the most liberal ones in South Asia; both the Bangladesh Bank and the government remain positive in promptly addressing new issues as they arise,” he told the seminar.
Given that the East Asian investors are flocking to Bangladesh to relocate their manufacturing facilities from costlier locations, Indian investors might be missing out on significant opportunities to invest in Bangladesh's infrastructure, toll bridges, hotels and tourism facilities, tertiary health care hospitals, developing land port, seaport and airport facilities.
Mahbub Hassan Saleh, acting high commissioner of Bangladesh to India, called for a healthy growth momentum in the South Asian countries.
Abdul Matlub Ahmed, president of the India-Bangladesh Chamber of Commerce and Industry, suggested that the Indian authorities should look into the issue relating to its transit facility for Bangladesh's trade with Nepal and Bhutan.