Bangladesh faces currency crisis as central bank halts issuing notes featuring Mujibur Rahman

DHAKA: The central bank of Bangladesh has apparently incurred a huge financial loss due to the interim govt’s decision not to issue previously printed notes, with approximately Taka 15,000 crore worth of paper notes featuring the image of Sheikh Mujibur Rahman remaining unused. The decision aligns with govt’s efforts to diminish Bangabandhu’s presence in public memory.

Although bank officials are unwilling to discuss the matter publicly, many, on conditions of anonymity, said the longstanding tradition of obtaining new notes from Bangladesh Bank has been abruptly halted, creating a crisis in the market. On the one hand, the printed money is being wasted without use; on the other hand, customers are suffering as a result, they added.

“Notes of various denominations are printed using paper and ink purchased with people’s taxes. Millions of notes with Bangabandhu’s picture are still lying in the vaults of various banks. The Security Printing Corporation does not have the capacity to cancel all the notes at once and print new ones. Therefore, notes with Bangabandhu’s picture cann’t be suddenly cancelled,” Ziauddin Ahmed, former executive director of Bangladesh Bank and former managing director of Security Printing Corporation, told reporters.

In this situation, he suggested the printed notes be circulated in the market to alleviate public suffering. “When new design notes come into the market, the old ones should be gradually withdrawn.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,” Ahmed said.

According to media reports, Bangladesh Bank is unable to issue new notes to banks in line with demand. The crisis became evident following the country’s political upheaval in Aug last year.

Since all forms of currency, including metal coins, feature Mujibur’s image, Bangladesh Bank abruptly stopped issuing new notes early April. As a result, the notes featuring Bangabandhu’s image are not reaching the market. Shops, banks, and citizens are now left with torn and old, dirty notes.

According to sources at Bangladesh Bank, the Security Printing Corporation is set to begin printing new design notes next month. In the first phase, new design notes of 20, 50, and 1,000 taka will be printed and subsequently released in the market through banks.