Liquidity Crunch Grips Bangladeshi Businesses Amid Political Turmoil

Businesses in Bangladesh face a severe liquidity crunch as the central bank caps cash withdrawals amidst political unrest following the fall of Sheikh Hasina's government. The Bangladesh Bank increased the withdrawal limit to Tk 2 lakh per account. The crisis affects cash-centric businesses and wages for daily workers.

Businesses in Bangladesh are grappling with a severe liquidity crunch, as the central bank has capped cash withdrawals at Tk 2 lakh per account, a media report revealed on Monday.

Prompted by heightened security concerns and ongoing political unrest, Bangladesh Bank raised the limit from Tk 1 lakh to Tk 2 lakh on Saturday.

The central bank's decision stems from a chaotic backdrop of police inactivity following violent protests against the Sheikh Hasina-led government. Interim Finance Adviser Salehuddin Ahmed justified the move, citing the need for stability.

With many business transactions historically reliant on cash, the crisis is hitting particularly hard. Businesses expressed fears of prolonged operational disruptions if restrictions continue. Notably, Abu Bakar Siddique, an oil wholesaler, highlighted the strain, pointing out substantial barriers in maintaining business continuity under the new rules.

Amidst this turmoil, Nobel laureate Muhammad Yunus has taken charge as the head of an interim government, following the dramatic ouster of Sheikh Hasina. Yunus announced key advisories aimed at stabilizing the economy and restoring public trust in the banking sector.