Bangladesh faces acute currency crisis after central bank halts releasing notes featuring Bangabandhu's image

Despite the crisis, the interim government, in a bizarre move, decided to stop the circulation of currency notes since they carry the image of Sheikh Mujibur Rahman, another step towards erasing the country's prominent freedom fighter.

The banks have so far failed to circulate the currency notes needed to meet the demand of the market, leading to the ongoing financial struggle for the country, which is already battered by a leadership crisis since Hasina's exit in August 2024.

Objections have been raised from various sides as the current banknotes contain photos of Sheikh Mujibur Rahman, several relevant sources told Bangladeshi newspaper Prothom Alo.

However, the currency notes that are currently in circulation will continue to be used.

Months after the interim government came to power in Bangladesh following former PM Sheikh Hasina's ouster, it decided to reprint new currency notes by removing Rahman's images from it.

Religious structures, Bengali traditions, and "graffiti" drawn during the July uprising will be included, Dhaka Tribune had reported in December.

Prothom Alo also reported that the photo of the bust of Sheikh Mujibur Rahman will be replaced by graffiti of the July uprising and other establishments in the designs of new banknotes, which are likely to hit the market in April-May.

Erasing a legacy

Murals with the image of Bangabandhu, and even his statues, were defaced and destroyed after Hasina escaped to India on August 5 amid severe protests against her government.

The demonstrations had initially started as a protest against a controversial job quota system, but soon spiralled into a massive agitation against Hasina, who was the longest serving prime minister of the Muslim-majority South Asian country that was formed in 1971.

The currency crisis is taking place in Bangladesh at a time when the country is struggling against rising food prices and high inflation.

Bangladesh’s foreign currency reserves have been shrinking for more than a year to $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, reported Indian news channel News 18.