Circulation of fake currency dropped by 50 percent amid intensified drives by the law-enforcement agencies after Bangladesh bank (BB) took a tough stance against forged notes since October last year, according to a BB survey.

The survey, carried out by BB officials, was based on the statements by members of identified syndicates involved in printing and circulating forged currency notes and the assessment of the members of law enforcement agencies.

“Per head distribution of the counterfeit currency value is maximum Tk. 0.10 (ten paisa) at present which was almost double nine months ago,” a concerned BB official told daily sun.

Per head distribution means estimated annual financial loss to millions of end-users across the country, he said.

According to the survey, the value of circulated fake notes in the country will be around Tk 15 million at present, as the country harbors 150 million populations, he said.

According to the survey, fake notes of around Tk 15 million still exist in the market currently against the country’s total population of 150 million.

The circulation of fake bank notes rose abnormally after new notes of Bangladeshi Taka, marked with the image of Father of the Nation, Bangabandhu Sheikh Mujibur Rahman, launched by the central bank in August last year.

In August last year, the central bank had introduced 23 million new currency notes. According to BB data, there are 500 million pieces of Tk 2 notes, 200 million pieces of Tk. 5, 400 million pieces of Tk. 10, 200 million pieces of Tk 20, 100 million pieces of Tk 50, 400 million pieces of Tk 100, 300 million pieces of Tk 500 and 200 million pieces of Tk 1,000 notes.

Currently, currency notes worth Tk 650 billion is in the market, according to BB statistics.

As the fake currency notes continues to pose a big threat to the currency notes, the central bank had sought close cooperation of the law enforcement agencies to round up members of the syndicates involved with note forgery after some cases of major fake note transactions were detected in September same year.

In September last year alone, police rounded up some 20 members of such syndicates and seized currency-making equipment and thousands of new counterfeit notes during raids in the city, according to police records. Till June this year, the number of arrested members of organised gangs involved in this illegal practice rose to above 50, said a concerned BB official.

“This clearly indicates that syndicates involved with it are using improved technology to produce counterfeit notes. We found that the forged notes were generated by computer by copying the genuine ones,” said the official expressing concern over rising banknote forgery.

The BB official said rising circulation of counterfeit notes was causing immense financial loss to millions of end-users across the country every day.

Using improved technology, active domestic and international syndicates were producing counterfeit notes, exactly matching the features of the genuine ones, he said.

However, the scenario has changed because of massive awareness campaign by the central bank through media and various publications, seminars and symposiums across the country, he said.

The BB official said mobility of every counterfeit note stopped at maximum third stage of transaction as users identify its fragile colors easily. He said the first stage is the wholesaler, second is the retailer and third is the end-user.

Commenting on this issue, former central bank governors Dr Salehuddin Ahmed has laid emphasis on ensuring strong security feature and distinguish the currency notes in size and color to prevent circulation of fake notes.

“Similarity in size and outlook of currency notes usually creates confusion among users and they can not distinguish the difference between genuine and fake notes during rush hours or during the load-shedding periods,” he said.

The renowned banker also underscored the need for proper implementation of laws so that none of the arrested members of forge note printing syndicates could get bail from the court.

“One of the major reason for rising circulation of fake notes is the superiors (syndicate bigwigs) always remains behind the scene and they help their associates evade punishment,” he said.

Dr Ahmed categorically disagreed to the central bank’s survey regarding reduction in the average financial loss of citizens due to mobility of fake notes.

“I am not sure whether the survey report is right! For example, a poor person who earn Tk 500 a week suddenly fall victim to fake note. His loss is a cost of a week’s labor. So, the magnitude of financial loss from fake notes cannot be average at all,” he said.

He said the duty of the central bank in this regard is to create trust among currency users by protecting its security properly.

He said fake note circulators often take advantage of the people’s ignorance about the differences between genuine and forged notes.

While narrating the main feature of a genuine note, a BB official said its colour cannot be wiped out. “In case of a fake one, the touch of even a wet finger can do so,” said the official.

The latest notes, he added, were made of high-quality cotton (90 percent) and polymer (10 percent) with a synthetic security thread in the middle. It has three pixel watermarks, including one of Bangabandhu Sheikh Mujibur Rahman, and a tiger.

The genuine notes were made of optically variable ink (OVI), which usually altered in various lights, he added.

A genuine note was made of a high-quality paper that would protect the note from getting damp, while the paper of a counterfeit note moistens easily, he said.

The Daily Sun/Bangladesh/ 12th July 2012