The adverse effects of a mushrooming counterfeit currency racket in any country is dire, its consequences unthinkable. Firstly, it reduces the value of real money. It also causes inflation by artificially increasing the supply of money, and enables other crimes in the country.
In our country, activity of phony-currency traders get amplified mostly during Ramadan, ahead of Eid-ul-Fitr, since large-scale cash transactions are on the rise. And to add insult to injury, we neither have an appropriate nor an approximate estimation of how much counterfeit currency is in circulation.
The inflation rate in Bangladesh was recorded at 6.19% in May of 2015. The inflation rate in Bangladesh averaged at 6.63% from 1994 until 2015, reaching an all time high of 12.71% in December 1998, and a record low of negative 0.02% in December 1996, according to the Bangladesh Bureau of Statistics (BBS). However, there is no estimate of how many fake notes have contributed to these statistics.
Several gangs are currently involved with this crime, of which most are active in the capital city, local newspapers have reported. This year, the gangs have already started releasing the fake notes through their associated agents. Meanwhile, the law enforcers have nabbed some spivs red-handed, and recovered a significant amount of fake notes.
But the statistics show something else: More than 5,000 cases connected with counterfeit currency await trial. 53 members of some 25 gangs have been arrested in the last one year, of which 12 members are repeat offenders, having, since then, been released on bail. But who will stop it? And how?
There are also allegations that money withdrawn from either banks or ATMs contains fake notes at times. In case of ATMs, the client just suffers the loss since the banks gently refuse to admit fault. The poor and the uneducated are usually the main targets of fake note traders.
Is it possible to stop the imitation of currency notes while the perpetrators get bail so easily and continue to involve themselves in such illicit activities? How can we curb the trade of fake notes with such a limited force?
Many cases are yet to be put on trial. Most of the racketeers get bail immediately after they are arrested by the law enforcers. Some of them never even receive minor forms of punishment. All the authorities do is install fake note detectors in the shopping malls and circulate awareness messages through flyers every year.
The fake note trade is a virus which directly harms our economic stability in the long-run and at quite a large scale. The authorities concerned must implement a zero-tolerance policy to curb the fake note trade. They should be strongly committed to saving our economy from such a poisonous crime. Otherwise, this will no doubt paralyse our economy in the days to come -- an economy which has, in recent times, boasted such promising results.
This harmful trade hurts our human resources as well. One crime gives birth to another crime. Perhaps we have forgotten the saying: “Justice delayed, justice denied.” If justice is denied, crime is nurtured. We want to see visible and efficient doling out of punishment for such crimes for the sake of a sustainable economy, and to ensure the rule of law.
Political will for welfare, good governance, and rule of law is not merely theoretical -- we do believe in action. We can also learn from other countries which are fighting crimes of a similar nature. In many countries, the fake note trade is associated with crimes like terrorism, drug trafficking, and so on. We simply cannot afford to turn a blind eye on this matter.
However, the central bank needs to take some measures to discourage counterfeiters. Banknote features should be upgraded as soon as possible. It should play a key role in preserving our healthy and emerging economy, so that we can build a better nation and economy free from counterfeit money.
