Standard Chartered Bangladesh recently completed the first Indian Rupee (INR) denominated trade transaction for Walton Hi-Tech Industries PLC, a concern of the Walton Group, to facilitate refrigerator and freezer exports to India.
This milestone is also the first BDT-INR export transaction for Bangladesh’s electronics industry.
The export transaction is the first cross-border trade transaction for Standard Chartered Bangladesh to have been settled in each nation’s respective local currencies – opening up a new avenue for currency diversification.
The ability to offer payment options in Indian Rupees to Walton Hi-Tech Industries PLC’s India-based customers allows the organisation greater operational flexibility and simultaneously assists in the conglomerate’s brand enhancement and the country’s overall export diversification objectives.
Access to direct invoicing facilities in INR also results in reduced costs and savings. Standard Chartered’s global network and regional strength make it possible to offer seamless BDT-INR transactions and trade capabilities, accelerating bilateral trade between the two countries.
Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh said: “Today’s event is a symbol of inspiration, collaboration, innovation and a matter of pride for the nation. Whilst this will have the benefits of simplified conversion, and faster transaction timelines, this is a start which bears tremendous potential for the future. We are proud to partner with Walton on this endeavour.”
Golam Murshed, MD and CEO of Walton Hi-Tech Industries PLC, said: “Currently Bangladesh is using US dollars to settle international trade transactions. To help alleviate the current liquidity situation and reduce dependency on the US dollar, Bangladesh and India have initiated bilateral trade settlements in their respective local currencies. To further this initiative, Walton has begun INR-denominated exports to India.”
He further added “Walton exports close to Rs1 billion worth of fridges, compressors, fans, and other goods to India annually. Bangladesh can settle import payments in INR from India up to the same amount using Walton’s export proceeds. This will reduce US dollar dependency and transaction settlement time. Additionally, importers and exporters from both countries will also benefit from avoiding double foreign exchange conversion.”
The transaction agreement between Standard Chartered and Walton Hi-Tech Industries PLC was signed by Naser Ezaz Bijoy and Golam Morshed.
Enamul Huque, MD and head of Client Coverage, Corporate, Commercial and Institutional Banking, Standard Chartered Bangladesh; Muhit Rahman, MD and head of Financial Markets, Standard Chartered Bangladesh; and other senior officials from both organisations were also present.
With over 118 years of uninterrupted presence, Standard Chartered is the only multinational universal bank in Bangladesh. As the nation’s longstanding partner in progress, the bank is facilitating major investments in power, energy, transportation, and urban development.
Standard Chartered accounts for a major share of all export and import financing, as well as power generation financing and SME lending by foreign banks. Standard Chartered utilises innovation and state-of-the-art technology to design solutions for stakeholders – both in Bangladesh and beyond.
Established in 1977, the Walton Group now has a workforce of more than 30,000 people across 22 production facilities, with a production capacity of ten million units and a presence in over 40 countries. The group and its subsidiary, Walton Hi-Tech Industries PLC, have become one of the most trusted and prestigious brands in the electrical and electronics appliances market and have won multiple awards both locally and internationally.