Dhaka, March 15 -- The festive spirit of Eid-ul-Fitr has been dampened for many as the central bank's decision to halt the supply of new banknotes has forced citizens to pay up to a 40 percent premium on the black market.

The lack of official distribution has left footpath vendors in areas like Gulistan and Motijheel as the only source of crisp bills, which are in high demand during Eid, when many elders traditionally give money to younger people, especially children and youth.

Buyers are paying an extra Tk 400 for Tk 1,000 worth of Tk 10 notes, effectively raising the price of each note to Tk 14.

The crisis stems from a series of leadership changes and policy reversals at Bangladesh Bank.

Under former Bangladesh Bank (BB) governor Ab...