Bangladesh Bank has feared crisis in the supply of one and two taka worth coins in the next two years as tender for coins’ procurement is canceled after six companies complained about a condition which asks to ensure that there is no health hazards with the coins.

Bangladesh Bank, the country’s currency issuing authority, already sent a new proposal to finance division of the government for a fresh tender. “Finance Division is now scrutinising the Bangladesh Bank’s proposal to cancel tender process after the companies complained about the condition of removing coins’ health hazards,” said a senior official of the banking division on Thursday last week.

The central bank estimates that 2 billion pieces of coins will be required till December 2013 as most of the paper notes have torn out in the past five years since 2007.

The official sources said different companies from Japan, France, Canada, the UK, Netherlands and Salvia raised complaint against a condition which wants avoiding of possible health hazards of the coins.

The central bank wanted DNA tests of DIN 1013-3 and DIN 1061 which are believed to be necessary for metal coins to make sure that the users are secured from all health risks the coins may carry. The central bank didn’t take the health issues of the coins seriously before this time and so carried out no DNA tests.

Banking Division sources said they have already started scrutiny of the Bangladesh Bank’s re-tender proposal which now excludes the condition of DIN Test and Health Guard Coin.

In its proposal, the central bank said that it is not possible to float a fresh tender by end the current fiscal which ends in just next month. It said 2 billion metal coins cannot be procured in this short period of time.

Bangladesh Bank, therefore, has requested the finance division to go for re-tender in the next fiscal.

The central bank also wants a re-allocation of Tk 1.2 billion in the next fiscal’s budget. The cost of procurement of two types of coins is estimated at Tk 1.4 billion.

Chairman of Bangladesh Krishi Bank Khondkar Ibrahim Khaled on Sunday told daily sun that the amount of money involved with one and two taka notes are very small for the country’s money market. “So, I don’t see any major setback will be brought by the coin crisis for the country’s inflation rate situation,” he said. Ibrahim Khaled, however, said that the traders and the consumers might face problems due to crisis of one and two taka coins as the paper notes of these values tore in the last five years.

The government procured 300 million pieces of two taka metal coins in 2010, 180 million pieces in 2008 and 200 million in 2004.

It also procured 500 million pieces of metal coins in 2009 and 400 million in 2003. Earlier, the government procured 265.75 million pieces of two taka paper notes in 2010, 106.40 million in 2009 and 272.80 million in 2007. e portrait of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman will be printed on the proposed one and two taka worth coins.

The Daily Sun/Bangladesh/ 7th May 2012