Why Did Rwanda Introduce New Banknotes?

12 Feb 2019  Tue

The Central Bank of Rwanda introduced new Rwf 1000 and Rwf 500banknotes last week. The new notes have improved security features to strike down counterfeiting activities up to a certain extent. Apart from that, these denominations are in high demand, due to which, they get soiled and damaged very easily. The new banknotes will be circulated as soon as the Government order is officially considered by the law.

Old banknotes of the same denomination will be circulated along with the new ones until a decision is taken to completely demonetise the old banknotes. Local traders have reported that old notes are often used in a damaged condition and tapes are used to mend them. Some even believe that Rwf 500 notes are hardly seen in circulation. The reverse side of the new Rwf 1000 note depicts a monkey climbing a tree while that of the Rwf 500 note shows young students studying.

Several countries keep on issuing new banknotes with better security features to combat the technologically-advanced counterfeiters. John Rwangombwa was appointed as the governor of Rwanda in 2013. Experts believe that throughout his term, John has tried his best to successfully maintain economic stability, improve quality of banking and insurance services, apart from analysing Franc’s depreciation trends. He hopes that the new notes will further improve Rwanda’s economy.

Image Courtesy: Central Bank of Rwanda

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