Bangladesh is in the grip of a severe currency crisis, with the central bank halting the circulation of newly printed banknotes, creating a shortage of clean money in the market. The resulting financial loss is estimated at over Taka 15,000 crore. But beneath the surface of the economic chaos lies a deeper political controversy—one that has sparked outrage and amplified the instability.
Decision to reprint notes, sans Mujib’s image
At the centre of the political firestorm is a decision by Muhammad Yunus-led interim government – to reprint the currency notes without the image of Sheikh Mujibur Rahman, the founder of Bangladesh. Traditionally, the Father of the Nation’s portrait appears on all denominations—a practice maintained since the country’s independence.
In yet another attempt to erase the legacy of Sheikh Mujib, the interim government last December decided to remove his image from the currency notes. Back then, Dhaka Tribune reported that the new notes would feature religious structures, Bengali traditions, and graffiti drawn during the July uprising — the very agitation that eventually led to Sheikh Hasina’s ouster and eventually sparked violence against minorities, particularly Hindus.
Prothom Alo recently reported that the government issued a directive earlier this month, asking the central bank to not publish the old notes with Rahman’s photo.
“Millions of banknotes with Bangabandhu’s picture are still lying in the vaults of various banks. The mint does not have the capacity to cancel all the notes at once and print new ones. To reduce the suffering of the people, the notes that have been printed should be released into the market,” Ziauddin Ahmed, former executive director of Bangladesh Bank and former managing director of Security Printing Corporation, was quoted by Prothom Alo as saying.
Printing yet to start
However, what worsens the situation is the fact that the printing process is said to begin next month, which will happen in phases. The first phase will involve printing of 20, 50 and 1,000 Taka notes.
Ahmed also noted that the notes already in circulation could not be cancelled all of a sudden. To make sure that people don’t suffer, the notes that have already been printed should be released into the market, and should be withdrawn gradually as new notes are printed, he suggested.
Another roadblock in the process is the fact that the mint doesn’t have capacity to print more than three notes at a time. So, even after the printing starts, it will take some time for the market to receive new notes.
Bangladesh Bank reports an annual demand for 1.5 billion new banknotes of varying denominations. However, the mint's production capacity is only 1.2 billion pieces, and in the 2023-24 fiscal year, they produced 1.05 billion new notes.
How people are suffering
The timing of the crisis couldn’t be worse. Bangladesh is grappling with high inflation, soaring food prices, and a weakening taka. Amid these economic pressures, the lack of clean currency is deepening public resentment and shaking trust in financial institutions.
Bangladesh’s foreign currency reserves have been under pressure for more than a year, falling below $20 billion in early 2025. This has made it harder for the country to finance essential imports such as fuel, food, and medical supplies. The halt in circulation of new banknotes has added to the uncertainty, raising fears of further capital flight and a parallel market for currency exchange.
Moreover, the informal economy, which constitutes over 40% of Bangladesh’s total GDP, is especially vulnerable. Workers in transport, street vendors, and rural merchants rely heavily on cash transactions. The shortage of clean currency means they are either forced to accept defaced notes—which are often rejected by others—or face severe business disruption.
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