All notes and coins of Tk 1 and Tk 2 denominations will be taken off from the market gradually, the finance minister announced on Sunday. Accordingly, in course of time, Tk 5 note will be the lowest currency note, which will then be issued by the finance ministry, instead of the Bangladesh Bank.
Currently, the finance ministry as the custodian of the treasury, issues notes and coins of Tk 1 and Tk 2 denominations.
The rest from Tk 5 to Tk 1,000 are bank notes which are released by the central bank.
Finance minister AMA Muhith, while talking to newsmen, pointed out that the currency notes and coins issued by the finance ministry involved very little portion of the money circulated in the market.
He felt that the smaller than Tk 5 currency notes are of little use and that the utility of Tk 1 and Tk 2 would come down to zero in future.
So, he argued, these notes will be withdrawn from the market and destroyed gradually, a process which will cost Tk 300 crore.
The minister held a meeting in this regard, which was attended by finance secretary Mahbub Ahmed and Bangladesh Bank governor Atiur Rahman.
Asked about benefits of withdrawal of the smaller notes, Muhith said the people would enjoy the benefit since they now have to carry unnecessary notes.
When asked how customers would buy a chocolate worth Tk 1, he said: “Does a chocolate cost Tk 1, really?”