The two countries launched a plan to reduce dependence on the US dollar in bilateral trade. Bangladesh hopes this will ease pressure on its foreign exchange reserves, which has led to considerable devaluation of its national currency in the past 18 months.
The proposed Comprehensive Economic Partnership Agreement (CEPA) with India is going to be a real shot in the arm for Bangladesh that is set to lose duty preferences after its graduation to a developing nation. Once the trade deal is signed, Bangladesh's export earnings will go up by $3-5 billion and India's by $4-10 billion in next 7-10 years, according to a final draft