Financial crisis hits B’desh as banks stop circulating new currency

Dhaka, April 28: Bangladesh is grappling with an economic crisis under the interim government led by Muhammad Yunus, as the banks are unable to circulate new currency notes to meet the demands in the country, local media reported on Monday.
The crisis emerged with the political transition after the ouster of former Prime Minister Sheikh Hasina following a violent uprising last year.
The new notes in the hands of Bangladesh banks are not coming to the market because all types of money and coins feature the image of Bangabandhu Sheikh Mujibur Rahman, according to a report by the leading Bangladeshi daily, Prothom Alo.
Due to this situation, citizens are facing financial losses as they do not have access to new notes. Shops and banks are also being flooded with torn and old dirty notes.
Last month, the central bank instructed all the scheduled banks to suspend the exchange of fresh notes for the public.
The Bangladesh Bank issued directives to the branches holding fresh notes that they must refrain from exchanging them and instead keep them in reserve. Banks were advised to complete all cash transactions using re-circulated notes. Since then, the exchange of new notes has completely stopped, and there has been a shortage of new notes in the market, according to the local media reports. (IANS)