The volume of currency notes in circulation and their value should be objectively monitored by the authorities of a state in order to protect the economy of such a state. The reason why counterfeit currency could damage an economy is because of the injection of excess money, followed by depression money in the hands of people who have not engaged in economic productive ventures.
This can lead to inflation and economic distress because of the poverty it causes among the vast majority of people.
If a given currency note is put out of circulation and the volume of currency notes produced to replace it has been put into circulation, its reinjection as start of currency transaction could have devastating effect on the domestic economy. The Central Bank has indicated that the withdrawal of the old currency notes will be done after its sensitization of rural communities in March and April because most of the bank notes in these areas are outside the bank.
We are not told when the exercise will be completed. Effective monetary policy requires the setting of dates and measures for the withdrawal of all currency notes and the circulation of new ones.
Foroyaa will contact the Central Bank authorities to know when the old currency notes will be withdrawn and how.
