By Leilah Bbaale
The Bank of Uganda has clarified that the proposed replacement of the 1000 Shilling currency note with a coin will not affect its operation or legality when the coin is introduced. Rather, the two will continue being legal tender after the printing of the note stops, until it is wiped out of circulation through wearing out.
The Executive Director of Research at the Bank of Uganda Adam Mugume says that currently, they are at the initial stage of the process that includes a market survey and development of the policy, whose approval will inform the design, timelines and other aspects.
When the phase-out of the note is announced, it will not be declared non-legal tender but will circulate alongside the newly introduced coin, a reason there should be no public anxiety or panic.
The idea to abolish the 1000 Shilling note came more than a decade ago and resulted in the introduction of the coin in 2012 as a commemorative coin for the country’s 50th independence anniversary. It has since been in use concurrently with the note.
