Bank of Uganda has joined the Valentine’s Day frenzy by reminding Ugandans against using banknotes as bouquets, saying such actions increase the cost of printing money to the Central Bank.
The Central Bank issued the reminder on its social media platform X formerly Twitter writing, “Today is a good day to bring this back,” and followed this up by sharing the earlier tweet issued in November 2023 where, Kenneth Egesa, Director Communication at Bank of Uganda had issued a similar warning arguing that such practices mutilates, defaces, compromises the integrity of Uganda shilling currency.”
It should be recalled that in November 2023, the Central Bank was compelled to issue the warning to florists, designers, gift stylists, and their clients cautioning the public against using currency banknotes and coins in making bouquets or any like creations.
“This involved us of brand new banknotes that are stuck together using glue, cello-tape, pins, clips and other adhesive or fasteners as part of the floral bouquets for various social events and gifting ceremonies,” wrote Egesa.
The central Bank added that whereas it doesn’t object to using cash as a gift, this exchange should conform to the normal use of currency to facilitate payment transactions, not using money in the form being used at the moment buy some members of the public.
“The practice destroys the utility of the banknotes making them unusable in cash processing and distribution equipment such as cash counting machines and ATMs which are a critical part of the cash distribution systems . It also results in premature withdrawal from circulation and replacement of banknotes which is an avoidable cost to the public,” added Egesa.
The latest warning comes at the time Bank of Uganda in its Annual Report of 2022/2023 that was released in October, indicated that the Central Bank spent Shs199Bn to print and issue new currency in Uganda, a cost that grew from Shs172.3Bn that was incurred in FY2021/22 .
Egesa in his statement indicated that Bank of Uganda is committed to safeguarding the integrity of the national currency in circulation to fulfil it’s functionality as the medium of exchange and store of value..
Section 367 of the Penal Code Act only penalised those who deface currency notes to six months in prison or a fine not exceeding Shs2000.
