Central Bank to retain old currency
UGANDANS will continue to use the two families of currency notes, which are concurrently in circulation since May 17 last year.
By John Semakula
UGANDANS will continue to use the two families of currency notes, which are concurrently in circulation since May 17 last year.
The Director of Communications at the Bank of Uganda (BoU), Elliot Mwebya, said no date has yet been fixed for the old currency to be totally withdrawn from circulation.
Mwebya said enough time will be given to the public for the old currency to be withdrawn.
But at the moment, BoU is gradually withdrawing the currency and by January 2011, the old currency notes had reduced to 25% in circulation.
Mwebya said the concurrent circulation was intended to reduce the disruption of normal business, which might have been the case if direct exchange had been carried out.
He also said the central bank intended to keep the old notes to avoid inconveniences to the rural population who have limited access to banks.
“With the concurrent circulation, there is no need for the public to incur costs and bear the inconvenience of travelling to the exchange centres,†he said.
Responding to allegations that BoU had found it hard to kick the old currency notes out of circulation because the new currency notes fade easily, Mwebya said the banknotes whether old or new do not fade with normal use unless washed with detergents or exposed to other chemical substances.
“What happens is that they get dirty when used badly and it is our appeal to Ugandans to use the banknotes responsibly to avoid premature withdrawal from circulation,†he added.
Mwebya also said BoU opted to change the currency notes because the technological advancement made it inevitable for them to remain with the old currency.
He said like every other product, currency is benefiting from the new technologies, advanced handling equipment, new design concepts and security futures.
UGANDANS will continue to use the two families of currency notes, which are concurrently in circulation since May 17 last year.
The Director of Communications at the Bank of Uganda (BoU), Elliot Mwebya, said no date has yet been fixed for the old currency to be totally withdrawn from circulation.
Mwebya said enough time will be given to the public for the old currency to be withdrawn.
But at the moment, BoU is gradually withdrawing the currency and by January 2011, the old currency notes had reduced to 25% in circulation.
Mwebya said the concurrent circulation was intended to reduce the disruption of normal business, which might have been the case if direct exchange had been carried out.
He also said the central bank intended to keep the old notes to avoid inconveniences to the rural population who have limited access to banks.
“With the concurrent circulation, there is no need for the public to incur costs and bear the inconvenience of travelling to the exchange centres,†he said.
Responding to allegations that BoU had found it hard to kick the old currency notes out of circulation because the new currency notes fade easily, Mwebya said the banknotes whether old or new do not fade with normal use unless washed with detergents or exposed to other chemical substances.
“What happens is that they get dirty when used badly and it is our appeal to Ugandans to use the banknotes responsibly to avoid premature withdrawal from circulation,†he added.
Mwebya also said BoU opted to change the currency notes because the technological advancement made it inevitable for them to remain with the old currency.
He said like every other product, currency is benefiting from the new technologies, advanced handling equipment, new design concepts and security futures.