Bangladesh Bank has stopped the circulation of newly printed banknotes. The decision has resulted in a financial loss of around Taka 15,000 crore and scarcity of clean currency in the market. The notes featuring the image of Sheikh Mujibur Rahman printed so far are set to be locked in the bank’s vault as per the directions from the interim government, according to a Times of India report.
The decision by the interim government is to reduce the presence of the country’s founding leader.
Halt on currency circulation makes people struggle
According to the TOI report, no new notes have been supplied to the commercial bank for the daily financial activity. The decision has broken a long-term tradition of supplying new notes ahead of the holidays and major transactions.
Old, Torn Banknotes Still in Use Amid Fresh Note Shortage
A shortage of new banknotes is putting pressure on everyday cash transactions, as shops, banks, and customers struggle to handle dirty, torn, and worn-out currency. With no replacements being issued, the issue continues to grow.
Ziauddin Ahmed has suggested a phased withdrawal of old notes as new ones are introduced. “When new designs are released, old notes should be gradually taken out of circulation. Typically, notes remain usable for about four to five years,” he explained.
New Currency Designs on the Way
The TOI report mentioned that Security Printing Corporation will start printing new design notes next month. In the initial phase, Taka 20, 50, and 1,000 notes will be circulated through banks.
The shortage began after political shifts in August last year, when Bangladesh Bank halted the release of all currency, including coins that featured Sheikh Mujibur Rahman’s image.