Another Indian Neighbor in Crisis: Bangladesh Faces Economic Turmoil Amid Currency Controversy
Bangladesh, India’s eastern neighbor, is facing a deepening economic crisis following a controversial order from the interim government led by Nobel laureate Muhammad Yunus. The directive to the central bank to replace currency notes featuring the image of the nation’s founder, Sheikh Mujibur Rahman, has triggered widespread confusion, a cash shortage, and rising public discontent.
The situation comes amid regional instability, with tensions already high in India and Pakistan after the Pahalgam terror attack. Now, Bangladesh is grappling with its own internal crisis, rooted not in diplomacy but in a symbolic erasure of national legacy.
What Sparked the Crisis?
Following the removal of Prime Minister Sheikh Hasina, the interim administration ordered the redesign of major banknotes—₹20, ₹100, ₹500, and ₹1,000—replacing Sheikh Mujibur Rahman’s portrait with images of religious sites, protest graffiti, and traditional Bengali motifs. The central bank halted the release of ₹15,000 crore worth of Mujib-featured notes, but delays in rolling out the new notes have caused a severe cash crunch.
Experts, including former Bangladesh Bank official Ziauddin Ahmed, warn that the country lacks the printing capacity to replace all notes quickly. Meanwhile, banks are holding crores worth of unreleased notes, and ATMs are dispensing torn or unusable currency.
Public Reaction and Political Backlash
The decision has sparked protests across Bangladesh. The Awami League, led by Sheikh Hasina—daughter of Sheikh Mujibur Rahman—has fiercely opposed the move. Some officials estimate that fully phasing out Mujib-featured notes could take 5–7 years.
In daily life, citizens and tourists alike are suffering. Reports show people receiving unusable notes from banks and shops, further undermining confidence in the currency.
If unresolved, this monetary disruption may spiral into a larger economic and political crisis, adding yet another point of concern in an already volatile South Asian region.
