A slew of new banknotes will hit the money market on Wednesday as demand surges for Eid tips with shinny notes, officials say.
The Eid-ul-Fitr festival is now round the corner and people usually give Eid tips (better known as Eid salami) to their dear and near ones with glossy notes.
To help the public obtain fresh notes, Bangladesh Bank (BB) issues Tk 230 billion worth of Tk 10, Tk 20, Tk 50 and Tk 100 banknotes on the market today (April 20).
New-note trading books a roaring business in Dhaka city centring Eid when it comes to this ‘salami’ tradition. Also, informal not-exchange roadside shops galore in the Gulistan area round the year.
Traders sell new notes they received in exchange for torn and defective notes, central bank sources said.
Traders say the demand for new notes this Eid is increasing significantly unlike in the past two uncanny years, with fresh notes worth over Tk 10 million being sold in Dhaka daily now.
However, the amount may hover around Tk 30-40 million four to five days before Eid.
Vendors cash in on torn and defective notes and buy them at lower than stipulated rates from those who are unable to exchange.
They also sell bundles of new notes ahead of Eid to make some profit that ranges from Tk 70 to Tk 150.
During a spot visit to Motijheel financial district and its adjacent Gulistan area, people of different professions, including students, were seen gathering to buy new notes.
A few mobile sellers were found displaying notes in downtown Motijheel near the regulator while some selling the notes sitting in front of Gulistan Sports Market.
Jamal (single name), a private job-holder who came to Gulistan to buy new notes, said he bought a bundle of 50-taka notes from a trader paying Tk 150 more on Sunday.
“Had I taken it from the bank, I wouldn’t have cost any extra money. But it’s very difficult and time-consuming to collect notes from banks ahead of Eid,” he told the FE.
Muhamaad Ali, 35, a car driver, came to Gulistan for the same purpose. He said he bought a bundle of Tk 100 notes for his near and dear ones.
“Children’s joys double when they get fresh banknotes as Eid salami,” he recollects.
A seller wishing anonymity at Motijheel said they collect the new notes from different bank officers and employees.
Al Amin Khandaker, who has sold taka in Motijheel for the last 30 years, said demand for fresh notes is very high this year.
There is a huge demand for Tk 10 and Tk 20 denominations, he said, adding that he was exchanging Tk 100,000 daily until Sunday.
His sale will pick up substantially in the coming days ahead of Eid, Al Amin pointed out.
Admitting that the sale of currency notes is illegal, he argued that they had been involved with the business for the last 50 years.
“People who could not manage and collect the notes from the banks, are coming to us to buy them,” Khandaker added.
Imdad, a 41-year-old seller in Gulistan, told the FE correspondent that he had been selling the fresh notes for the last 16 to 17 years on the kerb market.
“Sale of notes is rising day by day ahead of Eid,” he says, adding that demand would be very high after the central bank starts releasing the notes on April 20.
Md Serajul Islam, executive director and spokesperson for the Bangladesh Bank, told the FE that the central bank would start releasing new currency notes worth Tk 230 billion( 23,000 crore) on the market on April 20.
“Bangladesh Bank will release the fresh notes through 32 branches of different scheduled banks,” he stated.
Before the Covid-19 outbreak, the BB was used to exchanging fresh currency notes for people in special booths at its head office in Dhaka.
sajibur@gmail.com