Legal Notice Calls for Halt to Unbacked Money Printing, Withdrawal of Tk1,000 Notes

A legal notice has been served on the government demanding an immediate halt to the issuance of new money without adequate reserves of gold, silver or foreign currency, as well as the withdrawal of Tk1,000 banknotes to curb inflation, black money and corruption.

Supreme Court lawyer Md. Mahmudul Hasan served the notice on Tuesday in the public interest.

The Cabinet Secretary, Secretary of the Finance Division of the Ministry of Finance and Governor of Bangladesh Bank were named as recipients of the notice.

According to the notice, Bangladesh Bank has been continuously increasing the money supply by issuing what it describes as artificial money without sufficient reserves or backing. It argues that, under what it calls the universally accepted principles of monetary policy and economics, the issuance of new money should be supported by an equivalent reserve of gold, silver or reliable foreign currencies such as the US dollar, euro or Chinese yuan.

The notice further claims that issuing money without such backing is eroding the purchasing power of the taka under the “quantity theory of money,” contributing to rising prices of essential goods and worsening inflation.

It argues that persistent inflation is severely undermining the ability of low-income, poor and middle-class people to afford food and other basic necessities.

Referring to Article 32 of the Constitution, the notice states that the right to life encompasses the right to live with dignity, not merely to remain alive. It claims that forcing people into severe economic hardship and food insecurity through monetary policies would amount to a violation of this fundamental right.

The notice also calls for the immediate withdrawal of the Tk1,000 banknote, arguing that such a high-denomination note has limited practical use for ordinary people, day labourers and small businesses in their daily transactions.

It alleges that the Tk1,000 note is widely used by corrupt networks, tax evaders and criminals to store illicit funds outside formal banking channels, contributing to the growth of a “shadow economy.”

The notice cites India's withdrawal of its Rs2,000 banknote as an example of efforts to curb the hoarding of unaccounted money. It argues that withdrawing Bangladesh's Tk1,000 note would help reduce the circulation of black money and increase transparency in financial transactions.

The notice has demanded that the authorities take necessary legal and administrative measures within 15 days to completely stop the issuance of new money without adequate reserves of gold, silver or foreign currency and to withdraw the Tk1,000 banknote.

It warned that if the authorities fail to take action within the stipulated period, a writ petition will be filed before the High Court Division in the public interest.