Finance Minister AMA Muhith on Sunday said the government would gradually withdraw notes of Tk 1 and 2 denominations making Tk-5 note the lowest denomination due to the rapid loss of currency value.
“Notes of Tk 1 and Tk 2 will be withdrawn gradually, while Tk 5 will be the lowest denomination,” he said.
Talking to the reporters after a meeting at the Finance Ministry, Muhith, however, did not say when the process to withdraw the notes will begin. Bangladesh Bank Governor Dr Atiur Rahman and Finance Division Senior Secretary Mahbub Ahmed attended the meeting.
At present, notes of the Taka range from 1 to 1,000. Of them, Tk 1 and Tk 2 are treasury notes issued by the Finance Ministry while the rest are bank notes released by the Bangladesh Bank.
Asked what would be the advantage of the government if this decision is implemented, the Finance Minister said the common people would get the most facility as they would not need to go around with these unnecessary currencies.
He also noted that Tk 1 and Tk 2 notes and coins were now very few in circulation while the utility of these currencies would gradually come to a zero level.
Currently, there are coins as well as notes for Tk 1 and for Tk 2. Tk 5 is also available in both notes and coins. Tk 10, 20, 50, 100, 500 and 1,000 are only available in notes.
Source: BD Chronicle