Bangladesh faces currency crisis as new notes remain locked in vaults
Bangladesh is facing a currency note crisis due to the government’s decision to restrict the circulation of new currency notes. The issue began following a recent political shift in the country.
Under the interim administration led by Muhammad Yunus, banks in Bangladesh have reportedly been instructed not to release newly printed currency notes. According to local media and banking officials, the restriction is linked to the images printed on the notes.
All new currency notes in Bangladesh feature the image of the nation’s founding father, Bangabandhu Sheikh Mujibur Rahman. He was also the father of Sheikh Hasina, the former Prime Minister who was recently ousted following a violent political transition.
Following this change in leadership, reports suggest that the interim government has implemented a freeze on the issuance of these notes. Although large volumes of new currency have already been printed and stored in bank vaults, they are not being circulated, according to banking sector sources.
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This restriction has created a cash shortage in the market. ATM machines are running low on available currency, and traders across local markets have reported difficulties in cash-based transactions. Some banks are also limiting cash withdrawals due to reduced supply.
Officials have not provided an official explanation for the freeze. However, multiple sources suggest that the directive may be politically motivated due to the presence of Sheikh Mujibur Rahman's image on all new currency notes.
There has been no confirmation from the Bangladesh Bank regarding when or if the freeze will be lifted. The bank has also not issued any public clarification on the current note distribution policy.
As of now, the situation remains unresolved, with financial institutions awaiting further instructions from the interim government.
