In this Geopolitical Trends video, host David Oualaalou explains why India and Bangladesh are discussing a dual‑currency card that would eliminate the US dollar from bilateral payments. He begins by noting the recent inauguration of the India‑Bangladesh Friendship gas pipeline – the first cross‑border energy link between the two nations – and highlights its $45 million cost, largely funded by India. Oualaalou then outlines the economic ties: Bangladesh spends about $2 billion annually in India on treatment, tourism and education, while India is among Bangladesh’s top three import sources. Bilateral trade grew from $9.4 billion in 2019 to $10.7 billion in 2021, representing roughly 14 % of Bangladesh’s trade. He argues that using the US dollar for transactions forces a double conversion (rupee → dollar → taka), inflating costs for both consumers and businesses. A hypothetical credit‑card purchase illustrates the extra fees. The video reports that the Bangladeshi central bank governor and the RBI governor have discussed a framework to settle trade directly in rupees and takas, mirroring moves by Saudi Arabia with China and other countries shifting away from the dollar. Oualaalou frames this as a strategic, business‑driven decision for emerging economies, especially as Bangladesh ascends to emerging‑economy status. He concludes by congratulating Bangladesh’s progress and urging viewers to comment and join an upcoming members‑only livestream Q&A.
Chapters
Hello everyone and welcome to Geopolitical Trends. My name is David Oualaalou. So good to be with you as always. India and Bangladesh are discussing, get this guys, de-dollarization as a dual currency card is in the works between the two countries. In this video, I am going to provide you my insight as to why this development is very crucial to not only the regional economy but also to how it's going to impact the global economic order. So, but before I do all this, of course, I'd like to thank the channel's members and, and for you, uh, subscribers. And if this is your first time landing on this channel, please, uh, subscribe and smash that notification button so you will be notified every time I upload a new video. Speaking of channel's members I will be doing a live stream for members only. I will do a Q&A session and it will be a time to just answer some of your questions and interact with you on a personal level. So I look forward to that and I will announce it for you guys, for the members. I will announce it very soon. Let's dive in into this because it's very, very important. Well, just few days ago, as a matter of fact, on Saturday last weekend which is on March 19th or 18th, somewhere around that, Prime Minister Narendra Modi and his Bangladeshi counterpart Sheikh Hasina inaugurated the India-Bangladesh Friendship Pipeline. This one has to do with gas. It's very major, and I will tell you why as I move forward in this discussion. So this is the first— get this, guys— it's the first cross-border energy pipeline between India and Bangladesh. And it was built at an estimated of about $45 million, of which Bangladesh portion was about $34 million. But it has been borne by an Indian government and the grant assistance. That is how Bangladesh was able to finance this one. Here. But that's not, uh, the key is not about that one. The key is about how India and Bangladesh, you know, because mind you that Bangladesh now, it moved in its economic status on the global stage. So this is why it's very crucial. You all remember last time when I mentioned in geopolitics you have to look at the two main things. Economics and finance. Here is, here is your sign and indication, write it on the wall, and how this will impact the region and the world at large. So, so Bangladesh and India were in talks— are in talks rather— about doing away with the US dollar as the official currency for payments between the two countries. You all see where this is going. I mean, by now, guys, based on what I've been discussing with you and sharing with you the information and all, it should come as no surprise to you that more and more countries around the world are moving away from the dollar. So these developments, of course, will bring down the cost. Here is the reason why it will bring down the cost of trade between India and Bangladesh, as well as the conversion rate losses for businesses in both countries and of course for ordinary people. So the talks between India and Bangladesh took place on the sideline of the G20 Finance Ministers and Central Bank Governors meeting, which was held about 3 weeks ago, 4 weeks ago or so. So here's the thing. Every year, every year, Bangladeshi nationals— just to put this in perspective why both countries want to move forward with de-dollarization, in other words, get rid of the dollar altogether in their trade, bilateral trade, and for ordinary people. Here's the thing: every day— I'm sorry, every year, Bangladeshi nationals spend about $2 billion on treatment, tourism, and education in India. This is according to the government, the Indian government's estimates, and I will provide you a link to all this. At the same time, India is among the top 3 import destinations for Bangladesh. So Bangladesh also is one of India's largest trade partners in, in the region. And I'm going to provide you some numbers just to put things in perspective. Bilateral trade between India and Bangladesh reached about 14%. Yes, 14% during 2021, and it moved from $9.4 billion in 2019 to about $10.7 billion in 2021. Yeah, that just makes perfect economic sense for India and Bangladesh to embark on this. And Bangladesh's holistic developments is viewed positively by New Delhi, with new opportunities— economic, that is— arising along the Indian northeastern region. That is the reason also why Bangladesh was eager to move forward with this deal. Because why, why is this, you may ask? Well, if you look at the geography of Bangladesh and India, especially in that part of northeastern part, Bangladesh and India share about, uh, 2,400, 2,500 miles border. It's considered the 5th longest land borders in the world. Yeah, that's how it is. So touching the Indian states of Assam, Tripura, Mizoram, Meghalaya, and West Bengal. So it's no small matter, and economically speaking, it makes perfect sense for them to go ahead, de-dollarize, and start trading in their own currency. So an official transactions between the two nations are conducted in US dollar as we speak, and then it's converted to rupees and taka, rupees being the currency of India and taka being the currency of Bangladesh, which leaves both sides, India and Bangladesh, with some conversion losses, you know. And I'm gonna give you just quick example to put things in perspective for for you. So if, by the way, if you like this video so far, please hit the like button. That helps me with the algorithm, as far as you know how it works with the YouTube algorithm. And also subscribe if you have not done so, and I really thank you for your support. So, so as I said, let me give you the example. Let's hypothetically, you are a Bangladeshi credit card holder. Okay, you make a purchase in India. The rupee amount that you use for your credit card, whatever that amount is, is converted to the dollar. Okay, and from the dollar is converted to taka because you are a Bangladeshi purchasing something in India. So the cardholder, you in this case, end up paying more than the actual rupee Taka exchange rate because of the two-time dollar conversion for just one transaction, because the conversion has to go for to India's currency and it has to go to the Taka currency, you know. And this is usually where, uh, you, you start to see countries now saying enough with this dollar thing because it's a loss for, for most countries, and that's why they are moving into this direction. In the same case for businesses, when they import— let's say you are a business owner in India or in Bangladesh. Let's say you are a business owner in India and you import goods and services from Bangladesh or vice versa. Okay, this prompted now the Bangladeshi bank governor Abdul Rauf Talqader and Reserve Bank of India Governor Shaktikanta Das to discuss the possibility of having an arrangement such that transactions will not be backed, will not be backed to the US dollar. That is what's at the heart of all this. It is the same thing Saudi Arabia is doing within with China right now. And that's why I say Put this in the big picture. India is seeing where the trend is going. Bangladesh is seeing where the trend is going. And you look at what Saudi Arabia just did with China. Iraq ditching the dollar. Iran already ditched the dollar. Russia and some other countries in the Global South are all switching to yuan. That's just common sense. It's a business decision, is a strategic move. And that's the reason why India and Bangladesh— and remind you that Bangladesh now, he moved in the emerging economic status on the global stage. You know, it's not the likes of India or China, but it moves from underdeveloped to developing, to developed, developing, I'm sorry, developing emerging economy or emerging economy. So, so here's my conclusion for you, because I always like to keep this brief and short, to the point. I would say congratulating the Bangladeshi Prime Minister Sheikh Hasina on the country's transition, yeah, from less developed country to developing nation status. And this is why it makes more sense for both India and Bangladesh to go ahead ditch the dollar and start doing the transactions together in their local currency. So make sure you guys to leave me some comments or questions if you have, and we can address this on a live stream. Speaking of live stream, I will be doing one this coming weekend. I hope you can join me if your schedule permits. Uh, and just a reminder for the channel's members, I will be doing live stream just for the members, a Q&A session for, for, for us to— for me to answer any questions you may have, or you can ask me anything basically. So well, I look forward to seeing you next time. As always guys, remember, geopolitics impact your daily life in more ways than one. Till next time guys, bye-bye.
