BoN issued new banknotes valued at N$2,6b in 2019

THE Bank of Namibia issued new banknotes amounting to N$2,6 billion in the 2019 financial year, compared to those amounting to N$1,7 billion issued in the preceding year, which indicates an increase of 52,9%.

The increase is noted in the recently released Bank of Namibia (BoN) 2019 annual report.

“The bank checked the authenticity and fitness of banknotes for recirculation, which subsequently resulted in the withdrawal of 41,8 million banknote pieces with a face value of N$2,5 billion in 2019, compared to 29,2 million pieces with a face value of N$1,6 billion in 2018.

The quality of currency in circulation remained a key strategic area for the bank during 2019,” the report reads.

In 2019, an increase was also recorded in the value of rand notes repatriated to South Africa compared to 2018. The repatriation of South African rand notes is in accordance with the bilateral Common Monetary Agreement between Namibia and South Africa that dates back to 14 September 1993.

The BoN is required to repatriate to the South African Reserve Bank any rand banknotes that are deposited in Namibia, the report indicates.

“The commercial banks continue to repatriate the South African rand coins on behalf of the Bank of Namibia to South Africa. BoN repatriated a total of R225 million rand notes to South Africa, compared to R150 million in 2018, which equated to an increase of 50%,” it reads.

The bank further noted a decrease in the number of counterfeit banknotes detected in 2019 compared to 2018. The total number of counterfeit Namibia dollar banknotes detected in 2019 decreased to 339 pieces, compared to 602 pieces recorded in the preceding year.

The N$200 banknote was the most targeted denomination by counterfeiters, accounting for 37,4% of total counterfeits detected in 2019, the report added.

“In 2019, a significant reduction was recorded in the number of counterfeits per million in respect of all Namibia dollar banknote denominations in circulation, which stood at seven pieces of counterfeit per million banknotes.

This number is far below the international benchmark of 70 banknote pieces per million banknotes in circulation,” the report adds.

– Nampa