Bangladesh Bank has announced plans to release new currency notes on 19 March in celebration of Eid-ul-Fitr.
These include newly printed Tk5, 20, and 50 notes, all retaining Sheikh Mujibur Rahman’s portrait.
Additionally, newly issued Tk100, 200, 500, and 1,000 notes will follow the existing design, according to insiders.
The decision to retain the previous banknote design has triggered internal dissent within the central bank.
Senior officials, speaking to media anonymously, expressed concerns that currency serves as a constant companion to the public, exchanging hands millions of times each day.
They argued that in the aftermath of the mass uprising, priority should have been given to invalidating Tk500 and 1,000 notes.
Such a move, they suggested, would have rendered vast sums of illicit money held by corrupt politicians and bureaucrats worthless, paving the way for a redesigned currency without Mujibur Rahman’s image.
However, instead of taking such measures, Bangladesh Bank is now introducing new notes featuring the same portrait, seven months after the public revolt.
In response, Bangladesh Bank Spokesperson and Executive Director Arif Hossain Khan stated that the central bank currently possesses a substantial volume of pre-printed notes.
Discarding these notes, he argued, would result in significant financial waste, which the bank aims to avoid.
"For this reason, we are circulating the already printed notes for Eid-ul-Fitr," he explained.
Regarding the redesign of currency notes, Khan confirmed that a new design has been finalised, with an anticipated release in April or May. He assured that old notes would gradually be withdrawn from circulation.
According to Bangladesh Bank’s data, as of December 2023, the total volume of currency issued stood at Tk301,774 crore, with Tk277,456 crore in circulation outside the banking sector.
Only Tk24,317 crore remained in bank reserves. Economic analysts have long contended that a significant portion of these banknotes is hoarded in private vaults, converted into ‘black money’ by corrupt politicians and oligarchs.
The issuance of currency in Bangladesh is managed jointly by the government and the central bank, with the government controlling the issuance of Tk1, 2, and 5 notes and coins, currently amounting to Tk1,546 crore.
However, rampant inflation has rendered these lower denominations virtually obsolete. Meanwhile, banknotes issued by Bangladesh Bank—signed by the Governor—include denominations of Tk10, 20, 50, 100, 500, and 1,000.
During Sheikh Hasina’s 15-year tenure, Mujibur Rahman’s portrait was incorporated into every form of currency, from the smallest coin to the highest-value banknotes.
Additionally, nearly all commemorative coins issued for various occasions have featured his image.
Currently, more than 15 gold and silver commemorative coins remain in circulation.
Bangladesh Bank’s data further reveals that as of June 2024, the market held 161.74 crore Tk10 notes, 96.50 crore Tk20 notes, and 59.78 crore Tk50 notes.
Higher denominations include 129.38 crore Tk100 notes and 33.12 crore Tk200 notes.
The most widely circulated banknotes are Tk500, with 249.68 crore notes in circulation, and Tk1,000, with 167.46 crore notes in use. Overall, 92% of all banknotes issued by the central bank consist of these two high-denomination notes.
A senior official from the central bank’s currency management division told Bonik Barta that approximately Tk20,000 crore worth of newly printed notes is currently held in reserve. The plan remains to release these notes featuring Mujibur Rahman’s image gradually.
However, the official warned that it could take several years to phase out old notes due to a large portion of high-denomination currency being hoarded by corrupt politicians, bureaucrats, and oligarchs.
As a result, the government may ultimately need to take drastic measures, such as invalidating Tk500 and 1,000 notes, to combat illicit financial hoarding.
