Bangladesh faces Taka 15,000 crore crisis as Central Bank halts circulation of notes with Bangabandhu’s image

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, which feature the image of Sheikh Mujibur Rahman, remain locked in bank vaults following a directive from the interim government.The decision reportedly aligns with efforts to reduce the public presence of the country’s founding leader, Bangabandhu.

Halted note circulation leaves banks and public struggling

Officials from Bangladesh Bank, speaking on condition of anonymity, confirmed that no new notes have been supplied to commercial banks in recent weeks. This has broken a long tradition of issuing fresh notes ahead of holidays and major transactions.

“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 can’t be suddenly cancelled,” said Ziauddin Ahmed, former executive director of Bangladesh Bank and former managing director of the Security Printing Corporation.

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 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“When new design notes come into the market, the old ones should be gradually withdrawn.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,” he said.

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.