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BoU sets deadline for demonetization of 1987 banknotes

By Julius Businge

The Bank of Uganda has today-Dec. 7 announced that the 1987 series banknotes will cease to be legal tender on March 30, 2013.

Addressing a press conference at the Bank’s head offices in Kampala on Dec. 6, Louis Kasekende, the deputy governor said the public should not panic because of the announcement but should endeavor to take these series to commercial banks so they exchange them for the 2010 series.

The notes to be demonetized are in denominations of Shillings1, 000, 5, 000, 10, 000, 20, 000and 50, 000 printed before 2010. This includes the shillings 10, 000 CHOGM commemorative note.

Kasekende said commercial banks will cease to issue the 1987 series banknotes to their customers with immediate effect. He said the public may continue to transact normally using the 1987 series banknotes already in circulation up to March 30, 2013; thereafter the 1987 series banknotes will not be acceptable for transactions.

He added that from March 30, 2013 to May 30, same year commercial banks will exchange the 1987 series banknotes with the 2010 series banknotes at full face value.

“The public may approach any commercial bank for purposes of exchange,” he said.  Kasekende added that on May 30, 2013 commercial banks will cease to exchange the old series for the new series banknotes. Thereafter, the public will only be able to exchange their 1987 series banknotes at Bank of Uganda offices, located in Kampala, Jinja, Mbale, Gulu, Mbarara, Arua, Kabale, Masaka and Fort Portal, but only up to the Dec. 31, 2013.

“Bank of Uganda is committed to achieving a smooth and seamless recall of the 1987 series banknotes, which currently constitute only 4% of currency in circulation,” Kasekende said, adding the total number of Ugandan currency in circulation is Sh2.336 trillion, out of these about Sh93billon are the 1987 series.

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