The government of Uganda has resolved to phase out low denomination notes starting with the 1000 shilling paper.
The logic behind this according to finance officers is that printing low denomination notes is costing the government so high against returns from it .
Finance minister Matia Kasaija ,and the Bank Of Uganda Executive Director Research Adam Mugume, signed off the resolution in a letter of intent published in the June International Monetary Refund, forth Review for Uganda claiming that the rising costs of print and circulation had attracted an analysis to see which denominations to replace with coins.
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As reported by the Monitor Paper , Mr. Mugume yesterday mentioned that the phasing out of low value notes would start with the 1000shs.
According to Mugume , the 1000 shs. note is heavily in circulation which always calls for numerous prints of it leading to high costs , however since there is a coin for it already , the note will be gradually phased out.
The 1000 shs. coin was introduced during Uganda’s celebration of 50 years of independence. Since then , it has been in circulation but not as dominant as the note. With the gradual phase out the coin is intended to take the major percentage.
On social media handles however , this news has caused alot of stir with mixed reactions.
Through Twitter , a user known as Forkyviele who took this in good faith responded saying; “They are phasing out the paper notes and replacing them with coins, starting with 1k, and then the rest of the denominations will be considered after.”
Usain K differed saying ; “All problems are caused by this devaluation of our money, how a currency note holds 50,000 in one note sincerely, now coins to replace small denominations like, 1,000, 2,000 etc”
Another Shanice Nakabo supported the move ; Phase out all small bills such that we can know when we have money and also know that we completely don’t have .Rather than being there there in the middle.”
Otherwise went ahead to offer recommendations such as adopting to a cashless economy.
Eric Sserubiru says ; “The best solution is promoting a system which supports cashless transactions like use of cards. This will not only reduce the costs of printing and durability but also the security of our people and our money. Additionally correcting revenue will be easy for URA.”
In the annual report 202/2022, the Bank of Uganda indicated that the cost of printing and circulating notes had gone up by 24.4 Billion shillings.
By S Kwagala