Tuesday, September 26, 2017

Bangladesh Bank looks to restrict supply of Tk 2 and Tk 5 banknotes

  • Staff Correspondent, bdnews24.com
    Published: 2017-08-31 10:45:16 BdST

bdnews24

The Bangladesh Bank is looking to restrict the supply of Tk 2 and Tk 5 banknotes.

An excess of coinage in the vaults prompted the decision, the central bank said.

In instructions issued to the chief executives of all banks on Wednesday, the BB said any bank seeking Tk 2 and Tk 5 notes from the central bank will now be required to withdraw 80 percent of the amount in coinage. The remaining 20 percent will be banknotes.

“We are also looking to reduce the number of Tk 2 and Tk 5 notes on the market,” BB spokesman Subhankar Saha told bdnews24.com.

“While banknotes are circulating on the market, the coins are left in the Bangladesh Bank vault. The new decision is a response to the vast deposits of coins currently in our vaults.”

The BB hopes the decision will increase the circulation of the coins. Saha said the decision would also dispel allegations that banks refused to accept coins.