Bundle worth Tk2,000 priced at Tk3,500: New currency notes scarce at banks, sold at inflated prices in open market

As Eid-ul-Adha approaches, the demand for fresh currency notes has surged, especially for the recently released new designs, but so has public frustration. 

Although Bangladesh Bank said it supplied over Tk500 crore in new notes to commercial banks, many customers say they are unable to collect them from bank branches and are instead being forced to buy them at inflated prices in the open market.

Sources allege that some dishonest officials at certain banks are diverting these new notes to the open market for profit instead of distributing them to regular customers. 

A visit to several branches of Sonali, Rupali, Agrani, Janata, Krishi, and Islami banks in the Motijheel area on Tuesday and Wednesday (4 June) revealed little to no activity regarding the distribution of new notes.

According to the central bank, it printed Tk520 crore in new notes for the upcoming Eid-ul-Adha. However, officials could not provide information regarding how much was allocated to each bank.

But, the sidewalks near Bangladesh Bank were bustling with vendors openly selling large bundles of new currency notes.

One vendor alone was found with at least Tk4 to 5 lakh worth of new banknotes. Some sellers, after running out of stock, were seen bringing in more new notes from nearby storage locations to resume sales.

A bundle of the interim government's newly issued Tk20 notes (worth Tk2,000) was being sold for as high as Tk3,500, an extra profit of Tk1,500. Similarly, a Tk50 bundle (worth Tk5,000) was going for Tk7,000. Even Tk1,000 notes were being sold in bulk at rates between Tk105,000 to Tk110,000 per hundred, indicating a premium of Tk5,000 to Tk10,000 per bundle.

At the Sonali Bank Motijheel branch, not a single customer was seen receiving new notes between 11am and 4pm on Tuesday. A senior official said, "We received such a small amount that it's not possible to distribute even Tk1 lakh per branch."

A customer named Al-Amin, who visited Agrani Bank, said he stood in line for four hours but was only given Tk10,000 in new notes. "Even then, I received notes printed during the previous government's tenure. I couldn't get any notes from the interim government series," he said.

Bangladesh Bank spokesperson Arif Hossain Khan said, "Banks have been supplied with new currency notes since the beginning of the week. Yet, reports from various sources indicate that most banks have not distributed these notes to the general public."

An official from a related department of Bangladesh Bank, speaking on condition of anonymity, said, "We have information that some banks have illegally diverted the new notes to the open market instead of giving them to customers. In some cases, they made illegal profits of up to Tk500 per bundle."

In response to the growing criticism and reputational damage, Bangladesh Bank has said it will take legal measures against those involved.

"There is no legal basis for selling new notes in the open market," said a senior official. "We are going to take strict action. Banks will also be directed to follow official codes while distributing new notes. If any vendor is found with new currency in future, the concerned bank will face serious consequences."

In response to the growing criticism and reputational damage, several sources at the Bangladesh Bank have said the bank is considering legal measures against those involved.

"There is no legal basis for selling new currency notes in the open market," one official said. 

"We are going to take strict action. Banks will also be directed to follow official codes while distributing new notes. If any vendor is found with new currency in future, the concerned bank will face serious consequences, the official added.