BSRM opens LC in Indian rupee to import spare parts

BSRM, the largest steel manufacturer in Bangladesh, has opened its first letter of credit (LC) in the Indian rupee (INR) to import spare parts of machinery, a day after the launch of trade settlements using the currency of the neighbouring country.

The LC, worth 4.84 lakh rupees, was opened with the State Bank of India (SBI) on Tuesday and was the first in Chattogram.

To mark the occasion, an event was organised at the BSRM headquarters in the port city on Wednesday. Some top officials of the SBI joined the event, where BSRM Chairman Alihussain Akberali and other high officials were present.

On July 11, Bangladesh and India rolled out the cross-border trade settlement mechanism involving the INR to cut over-dependence on the US dollar.

"We have opened the LC in the INR on a trial basis. It appears that the scope for opening LCs in the INR amid the dollar crisis will be beneficial for us," said Tapan Sengupta, deputy managing director of BSRM.

He said businesses might benefit in terms of the conversion rate but it will be clear after the settlement of the transaction.

BSRM imports a lot of raw materials and spare parts from India for its mills.