Bangladesh Bank Halts New Note Circulation, Causing Financial Loss and Currency Shortage
Bangladesh Bank has stopped circulating newly printed banknotes, resulting in an estimated financial loss of around Taka 15,000 crore and a growing shortage of clean currency in the market. The notes, featuring the image of Sheikh Mujibur Rahman, remain locked in bank vaults following a directive from the interim government, according to a TOI report.
The decision reportedly aligns with efforts to reduce the public presence of the country’s founding leader, Bangabandhu. Officials from Bangladesh Bank confirmed that no new notes have been supplied to commercial banks in recent weeks, breaking a long tradition of issuing fresh notes ahead of holidays and major transactions.
Dirty, torn notes still in circulation
The move has caused a visible strain on daily cash transactions. Shops, banks, and customers are reporting difficulty handling old, torn, and worn-out notes, as no replacements are being issued. Ziauddin Ahmed, former executive director of Bangladesh Bank and former managing director of the Security Printing Corporation, recommended a phased approach to solve the problem. When new design notes come into the market, the old ones should be gradually withdrawn. Generally, notes printed once can be used for a maximum of four to five years.
New design notes expected soon
According to sources at Bangladesh Bank, the Security Printing Corporation is scheduled to begin printing new design notes starting next month. In the first phase, notes of Taka 20, 50, and 1,000 will be introduced into circulation through banks. The shortage of fresh notes first surfaced after political changes in August last year. Since then, Bangladesh Bank has withheld all currency, including coins, featuring Sheikh Mujibur Rahman’s image.
Reference : https://economictimes.indiatimes.com/news/international/world-news/bangladesh-faces-taka-15000-crore-crisis-as-central-bank-halts-circulation-of-notes-with-bangabandhus-image/articleshow/120723942.cms
