Business and Economic News By Leo Odera Omolo in Kisumu

THE Bank of Uganda yesterday unveiled new-look bank notes in a major redesign of the currency since 1987. While most of the notes are in the familiar denominations of sh50,000, sh20,000, sh10,000, sh5,000 and sh1,000, the bank also introduced a sh2,000 note.

Specimens of the new notes issued by the Central Bank. The top two are faces of the newly introduced sh2,000 note. Below, left are the new and on the right, the old sh5,000 and sh1,000 notes

The notes will be in circulation from May 17, alongside the old ones, which will be phased out in a year-and-a-half.

Bank of Uganda (BOU) chief Emmanuel Tumusiime Mutebile said the new notes did not constitute a currency reform, nor were they dictated by politics.

Mutebile said over the years, the bank had issued new currency notes mainly for political reasons, usually after a change in government.

“This is the first time that BOU has introduced new notes on its own,” he explained.

The redesign, he said, was driven by the need to comply with international practices and to beat counterfeiters.

“Uganda is the first country in Africa to introduce ultra –modern security feature called SPARK,” he said.

Mutebile noted that besides the improved security features, the design also depicts Uganda’s rich historical, natural and cultural heritage.

The common security features for the 1,000, the 2,000 and sh5,000 notes are a water mark, a colour change image and a raised effect on the surface to help the visually-impaired people recognise it.

The notes also feature a windowed thread that changes from red to green when the note is titled. The notes also bear a hidden shiny stripe pattern.

The bank hired professional artists and designers led by Gen. Elly Tumwine which explains the Ugandan look as depicted by the main images which constitute pots and ornaments common in Ugandan homes.

The notes were printed by De La Rue, the world’s largest commercial security printer.

Mutebile said there would be no inflation and the public should not rush to the bank for the notes.

“The new notes should have no effect on the prices of goods and services in Uganda,” he said.

The bank, he said, will launch a campaign this month to educate the population about the notes.

Finance minister Syda Bbumba unveiled the notes but left shortly afterwards.

She said in a speech: “The redesign serves the public interest by easing cash transactions among ordinary people through the introduction of a low denomination note of sh2,000,” she said.

“Recent development in the oil sector among others continues to drive interest in Uganda as an investment destination.

“The Bank of Uganda is a key contributor through its role as regulator of the financial system.

Ends