Dhaka, Bangladesh (BBN)- The government has decided to withdraw all notes and coins lesser than BDT 5.0 from the market.
As per the decision, all notes and coins of Tk 1 and Tk 2 denominations will be taken off from the market gradually, Finance Minister AMA Muhith said in Dhaka on Sunday.
Talking to reporters after a meeting, the senior minister also said once the notes and coins reach the banks those will not be circulated again.
Currently, the finance ministry as the custodian of the treasury, issues notes and coins of BDT 1.0 and BDT 2.0 denominations. The rest from BDT 5.0 to BDT 1,000 are bank notes which are released by the Bangladesh Bank (BB), the country’s central bank.
The minister felt that the smaller than BDT 5.0 currency notes are of little use and that the utility of BDT 1.0 and BDT 2.0 would come down to zero in future.
He also argued these notes will be withdrawn from the market and destroyed gradually, a process which will cost BDT 3.0 billion.
BBN/SSR/AD-15Jan15-11:02 pm (BST)