The New Nation - Internet Edition

DEARTH of coins and currency notes of small denominations has added to the cost of business of retail traders ultimately passing the same on to the poor consumers mainly because of lack of attention from those who are running the central bank and the finance ministry. Buyers often have to forego loose changes for almost every purchase of products and services of the day as retailers cite unavailability of small coins and notes rather acutely. Careful watch on the money situation by the officials concerned serving the central bank and the finance ministry is considered vital in the discharge of their responsibilities.

As revealed by the media recently, the issue was raised in a meeting at the

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) with retailers complaining of short supply of coins and small currency notes from the banks. They procure those from unauthorised currency traders and beggars at higher prices. Retailers need to buy small notes and coins from the grey market at higher rates than their face value. Margins between retail and wholesale prices also widened for the same shortage of coins and small notes.

A corrupt section of officials and employees of the central bank is reportedly doing brisk business with small currency notes and coins. Businessmen have to buy coins and notes of 1,2, 5, 10 and 20 Taka denominations by paying up to 25 per cent higher prices and 'adjust the incidental expenses' to the prices of goods they sell. The obvious question comes - if one retailer can procure coins and small notes of at best Taka 100 or 200 at a time from Bangladesh Bank spending a lot of time, how can fresh notes or coins go to the grey market in sufficient quantities? The corrupt practice must stop.