N$4.76 billion circulating in the economy
Counterfeits under control
PHILLEPUS UUSIKUThe total value of currency in circulation in 2021 increased slightly by 1.0% from N$4.71 billion in 2020 to N$4.76 billion, according to the Bank of Namibia (BoN). In 2019, currency in circulation stood at N$4.5 billion.
The Covid-19 pandemic affected the Bank’s currency function in various ways, most notably during the lockdown, when demand for cash was higher than usual.
The central bank worked closely with the local commercial banks to ensure that sufficient currency stock levels were maintained at the cash centres across the country.
The number of coins in circulation increased by 2.2% from 252.3 million pieces in 2020 to 257.8 million pieces in 2021.
Furthermore, an increase in the individual coin denominations was observed for all coins except the N$10 coin. Although the N$0.05 cent coin remains in circulation as legal tender, the coin will not be issued by the Bank in the future. The final N$0.05 cent stock was issued in March 2021.
Overall, banknotes recorded a 0.9 percent average increase in value during the year under review. The N$200 banknote continued to be the most circulated banknote in 2021 with a volume of 14.3 million pieces, whilst the N$10 banknote was in second place with a volume of 10.2 million pieces, BoN said.
The N$50 banknote denomination had a volume reduction from 6.9 million in 2020 to 6.7 million in 2021. The N$30 commemorative banknote showed an impressive increase of 49.8 percent over the previous year.
2021 was the year that the Bank reprinted the modified N$10 banknote denomination under the signature of the new Governor Johannes !Gawaxab following his appointment in June 2020. The modified N$10 banknote denomination is currently in circulation.
Counterfeit
Counterfeit banknotes recorded during the year under review declined significantly. The total number of counterfeit banknotes detected during the 2021 year was 155 pieces, down from 364 pieces in 2020. Furthermore, the year 2019 recorded 660 counterfeits, 602 in 2018 and 440 in 2017.
The Bank of Namibia notes that counterfeits remain of poor quality and are below the Bank’s threshold of 10 pieces per million in circulation, as well as the industry standard of 70 pieces per million in circulation.
For year under review, the N$200 banknote recorded 78 counterfeits, N$100 (33), N$50 (37), N$20 (6) and N$10 (1). No N$30 banknote counterfeit was detected.
The N$30 commemorative banknote that was issued by the Bank on 15 May 2020 received high recognition in 2021. On 16 December 2021, the Bank was awarded the “Best Commemorative Banknote” at the High-Security Printing Virtual Awards in the regional category Europe, Middle East, and Africa. Winning the award was a significant achievement for the Bank as the note was the first commemorative banknote designed and issued by the Bank. To date, 90% of the banknote pieces printed by the Bank have been successfully placed in circulation. Interest from the international community remained firm and the Bank has continued to receive orders for the commemorative banknotes, the central bank said.
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