New banknotes scarce at banks, flood black market ahead of Eid

Despite the Bangladesh Bank’s recent release of redesigned Tk20, Tk50, and Tk1,000 notes ahead of Eid, scheduled banks are struggling to supply them to the public.

Meanwhile, the new currency is readily available on the open market at significantly inflated prices.

During visits to busy commercial areas like Motijheel and Gulistan, traders were seen openly selling the new notes on sidewalks. Demand has driven up prices dramatically. A single Tk20 note is selling for Tk50, while Tk50 notes are going for Tk80. New Tk1,000 notes are carrying an unofficial premium of Tk50 to Tk60.

Bundles are even costlier. A pack of Tk20 notes is being sold for Tk1,200 to Tk1,500 above face value and Tk50 bundles carry a markup of up to Tk1,200.

While these notes are seemingly abundant on the streets, banks have run dry. Even bank employees report being unable to access the newly issued currency.

“Only a few banks received new notes after their release,” said a frustrated official from a private bank in Dhaka. “While head offices may have received limited stock, branch offices have yet to see any.”

At the Sonali Bank head office in Motijheel, crowds gathered in hopes of acquiring the new notes; with little success. Outside, however, traders were selling them freely at premium prices.

“It’s hard to believe there’s a shortage when people are selling bundles right outside the bank,” said Monirul Islam, a customer waiting at Sonali Bank. “If the notes weren’t released properly, how did so many end up on the streets?”

Habibur Rahman, another buyer in Gulistan, blamed the situation on an alleged black market ring. “This is a clear syndicate. Only in Bangladesh do we see this happening with currency. With banks dry, we’re being forced to pay double outside.”

Most traders declined to explain how they sourced the new notes. One seller in Motijheel, speaking anonymously, claimed they were receiving them directly from contacts inside banks; especially from state-owned institutions in Motijheel and Gulistan.

“The bank officials don’t sell directly,” he said. “Middlemen handle the deals. Two days ago, I bought a bundle of Tk20 notes at a Tk900 premium. Now I’m selling it for Tk1,500 extra.”

Another trader confirmed this indirect channel, saying, “The system is organized. Bank officials pass the notes to intermediaries, who then distribute them to sellers like us.”

Bangladesh Bank began limited circulation of the new notes on 2 June, with plans to expand distribution beyond Dhaka after the Eid holidays.

Responding to the widespread black market activity, Bangladesh Bank spokesperson and Executive Director Arif Hossain said, “There is no official way for these notes to enter the open market from Bangladesh Bank. But if individuals withdraw and resell them, that’s beyond our control.”

When asked about possible internal collusion, he said, “If anyone has credible information implicating bank staff, we urge them to come forward. We’ll consult with the Governor and take strict action. Even I haven’t received any new notes yet; it’s disappointing to see them sold outside at marked-up prices.”

He also urged the public not to fuel the black market. “Refuse to buy new notes at inflated rates. If customers stop paying extra, the syndicate will collapse on its own,” he added.