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

DHAKA: The central financial institution of Bangladesh has apparently incurred an enormous monetary loss as a result of interim govt’s resolution to not challenge beforehand printed notes, with roughly Taka 15,000 crore value of paper notes that includes the picture of Sheikh Mujibur Rahman remaining unused. The choice aligns with govt’s efforts to decrease Bangabandhu’s presence in public reminiscence.
Though financial institution officers are unwilling to debate the matter publicly, many, on situations of anonymity, stated the longstanding custom of acquiring new notes from Bangladesh Financial institution has been abruptly halted, making a disaster available in the market. On the one hand, the printed cash is being wasted with out use; however, clients are struggling because of this, they added.
“Notes of varied denominations are printed utilizing paper and ink bought with folks’s taxes. Tens of millions of notes with Bangabandhu’s image are nonetheless mendacity within the vaults of varied banks. The Safety Printing Company doesn’t have the capability to cancel all of the notes without delay and print new ones. Subsequently, notes with Bangabandhu’s image cann’t be instantly cancelled,” Ziauddin Ahmed, former government director of Bangladesh Financial institution and former managing director of Safety Printing Company, instructed reporters.
On this state of affairs, he advised the printed notes be circulated available in the market to alleviate public struggling. “When new design notes come into the market, the outdated ones needs to be regularly withdrawn. Typically, notes printed as soon as can be utilized for a most of 4 to 5 years,” Ahmed stated.
Based on media experiences, Bangladesh Financial institution is unable to challenge new notes to banks in keeping with demand. The disaster turned evident following the nation’s political upheaval in Aug final yr.
Since all types of forex, together with steel cash, characteristic Mujibur’s picture, Bangladesh Financial institution abruptly stopped issuing new notes early April. Consequently, the notes that includes Bangabandhu’s picture should not reaching the market. Outlets, banks, and residents are actually left with torn and outdated, soiled notes.
Based on sources at Bangladesh Financial institution, the Safety Printing Company is ready to start printing new design notes subsequent month. Within the first part, new design notes of 20, 50, and 1,000 taka might be printed and subsequently launched available in the market by banks.