Bangladesh and Nepal are negotiating to make their currencies readily convertible against each other to minimise pressure on foreign currency.
Regional currency conversion is under consideration at the regional forum of SAARC but Dhaka and Kathmandu could proceed bilaterally too, a foreign ministry official told the news agency.
Commerce secretary Ghulam Hossain will discuss the issue with his counterpart at the secretary-level meeting to be held in Nepal Saturday, he said.
Kathmandu and New Delhi have a similar agreement which allows the Indian currency to become readily acceptable at the financial establishments. A similar agreement with Bangladesh would mean that the taka would also have the same currency in Nepal, the official explained.
It would also help Bangladesh as trade balance is tilted towards Nepal, he added.
Bangladesh’s exports to Nepal in 2010-11 were worth just over $1.3 million while imported from there were worth almost four times as much ($5 million).
In addition to that about 30,000 Bangladeshi tourists visit Nepal and spend foreign currency, both formally and informally, the official said.
Both the secretaries will discuss trade expansion and tariff cut of five percent on food, clothes, tissue paper, electrical goods, pharmaceuticals and construction materials.
‘These goods have good demand in Nepal,’ the official said.
Kathmandu sought zero-duty access of vegetables and fruits and in return would also allow zero-tariff access of Bangladeshi primary agriculture items, fish and other products, he said.
Bangladesh provides preferential treatment to Bhutan and many Nepalese products are exported to Dhaka through Thimphu, he added.
Bangladesh is actively considering direct bus service between the two countries, which would be routed through India as the two countries don’t share borders at any point.
Kathmandu has already sent a draft of the bus service agreement and Dhaka is working on finalising it, the foreign ministry official said.
‘Our commerce secretary will discuss it in the meeting. We hope to reach a final agreement soon,’ he added.
Bangladesh and Nepal is going to sign a memorandum of understanding to hold regular foreign office consultation.
Nepalese foreign secretary Durga Prasad Bhattarai will come to Dhaka on July 30 to sign the agreement, as he meets his Bangladeshi opposite number Mijarul Quayes.
There are similar agreements with Islamabad and New Delhi, he said.
Nepal allowed operation of a Bangladesh mission on October 7, 1971, even before the Pakistani forces had surrendered.
Bangladesh is working with Nepal bilaterally and sub-regionally on hydro-electricity cooperation and exploring possibilities of importing power.
-With New Age input
