As part of Global South’s growing tendency of moving-out of America’s repressive actions due to monopoly of dollar in the global economy, Bangladesh has already started already included Chinese yuan in the country’s credit transfer system Real-Time Gross Settlement (RTGS).
According to the Bangladesh Bank, the clearing and settlement of the Chinese yuan (CNY) will be incorporated in the RTGS system from February 4.
The decision came after a rapidly increased Bangladesh-China trade, fueled by Belt and Road Initiative (BRI) investments from China, which is the biggest trading partner of Bangladesh now.
Apart from this, the official said yuan proved itself remarkably stable and resilient amid adverse and uncertain economic conditions, like the Asian financial crisis in 1997 and the global financial crisis in 2008.
“With China’s growing centrality in international trade, commerce and investment, we’ve decided to include the Chinese yuan in the country’s RTGS system”, an official of Bangladesh Bank told Xinhua.
Bangladesh in April last year announced to settle its pending payments to Russia in Chinese yuan instead of US dollar.
The central bank of Bangladesh in September 2022 paved the way for banks in the country to maintain correspondent accounts in yuan to facilitate cross-border trade based on the Chinese currency.