The 62nd Young Scholars Seminar Series (YSSS) brought forward a fascinating exploration of policy interventions and their real-world impacts on Bangladesh’s economy. On 21 September 2025, two young researchers took the stage to present their thought-provoking work, shedding light on pressing issues like cash incentives and counterfeit currency.
Dr Fahmida Khatun, Executive Director, CPD, delivered welcome remarks and encouraged the young researchers to continue exploring important policy issues. She emphasised the importance of these discussions in nurturing critical thinking and generating innovative ideas that can address Bangladesh’s key economic challenges.
Ms Anindita Islam, Programme Associate (Research), CPD, presented her work on demonetisation and its impact on counterfeit currency in India, with a focus on the 2016 demonetisation policy. Her research compared India’s and Ghana’s experiences with counterfeit currency, highlighting the temporary disruption caused by demonetisation, only for counterfeit currency networks to quickly adapt and resume operations with new denominations. While the policy initially reduced counterfeit circulation, Ms Islam concluded that it was not a sustainable solution, stressing the need for more long-term, comprehensive reforms to tackle the underground economy.
Feedback on Ms Islam’s presentation was provided by Ms Mamtajul Jannat, Senior Research Associate at CPD, who noted the similarities between the situations in India, Ghana, and Bangladesh. She suggested that Bangladesh could benefit from drawing lessons from these countries’ experiences. Ms Jannat recommended expanding the research to include other South Asian countries, such as Nepal, where financial crimes and underground activities mirror those of Bangladesh, offering a more comprehensive regional comparison.
Md. Imran Nazir, Programme Associate (Research), CPD, discussed his research on the impact of the cash incentive policy introduced by Bangladesh Bank in 2019 which aimed at formalising remittance channels. Remittances are vital to Bangladesh’s economy, yet informal channels still capture a significant portion. Using the Synthetic Control Method, Mr Nazir compared Bangladesh’s remittance inflows with countries that did not implement similar policies. His findings showed a noticeable increase in remittance inflows following the introduction of the incentive, with a 0.1501 average treatment effect. However, he also emphasised the need for further research to assess the long-term effects, given the broader economic challenges.
In response to Mr Nazir’s presentation, Ms Shourza Talukder, Senior Research Associate at CPD, shared valuable feedback, pointing out that while the incentive is serving as a push factor, other factors such as access to remittance services also need to be considered. Ms Talukder raised a critical concern about the sustainability of increasing the incentive further, given the vulnerable state of Bangladesh’s banking system, with ongoing mergers and financial pressures. She questioned whether such increases could have unintended consequences and urged careful consideration of the banking sector’s capacity to handle additional incentives.
Foqoruddin Al Kabir, Research Associate, was the convenor of YSSS, and he moderated the session. Distinguished Fellow of CPD, Professor Mustafizur Rahman, along with Researcher Fellows, Research Associates, Programme Associates, and Interns of CPD were present at the session, many of whom participated in an open floor discussion and shared their valuable insights.
This dynamic session of the YSSS not only showcased the innovative work of young researchers but also fostered critical discussions on the effectiveness of policy interventions in shaping economic outcomes. The seminar served as a platform for reflecting on the challenges and opportunities Bangladesh faces in formalising its economy and combating financial crimes.
