50,000 note may cause inflation, say MPs
MEMBERS of the parliamentary committee on the national economy have opposed the impending introduction of a 50,000 shilling denomination.
By Cyprian Musoke
MEMBERS of the parliamentary committee on the national economy have opposed the impending introduction of a 50,000 shilling denomination.
They said the note would lead to inflation as the smaller denominations will slowly fall out of use.
They lamented that the Government was in advanced stages to introduce the notes.
“There is information that bank of Uganda has already printed the notes, and they are therefore waiting for time to put them into circulation,†said Nathan Mafabi, chairman of the committee.
The note will become the highest denomination ever introduced.
Rev Peter Bakaluba Mukasa said the note would burden small payments, as it will be difficult to break it into smaller denominations.
He said peasants would find it difficult to appreciate or absorb the note, as their transactions often involve smaller denominations.
Bugabula South MP Salaam Musumba said it is the elite like Mps who use high denominations.
MEMBERS of the parliamentary committee on the national economy have opposed the impending introduction of a 50,000 shilling denomination.
They said the note would lead to inflation as the smaller denominations will slowly fall out of use.
They lamented that the Government was in advanced stages to introduce the notes.
“There is information that bank of Uganda has already printed the notes, and they are therefore waiting for time to put them into circulation,†said Nathan Mafabi, chairman of the committee.
The note will become the highest denomination ever introduced.
Rev Peter Bakaluba Mukasa said the note would burden small payments, as it will be difficult to break it into smaller denominations.
He said peasants would find it difficult to appreciate or absorb the note, as their transactions often involve smaller denominations.
Bugabula South MP Salaam Musumba said it is the elite like Mps who use high denominations.