Connect with us

Hi, what are you looking for?

Cyprian Is Nyakundi


Currency return order netted Sh64b, says CBK


Kenyans returned Sh28.5 billion of the old Sh1,000 notes in the last month of demonetisation process deadline, according to new official data.

By the time the process came to a close on September 30, Central Bank of Kenya (CBK) data released yesterday showed, about Sh64 billion worth of the old notes were reintroduced to the formal banking system.
Most of the other pieces of the old Sh1,000 notes estimated at 149.7 million pieces, were replaced with new notes.
When the demonetisation process started, there were about 209 million pieces of the old notes, which have since been rendered useless.

SEE ALSO :Family pleads for man stuck with Sh500,000 in old notes

During the process, Kenyans had the option of either replacing the condemned old notes with new ones or simply depositing them in banks.
This saw money outside of banks — in coins and notes — reduce by nearly a third from Sh222 billion in May to Sh157.7 billion, according to the latest data from the CBK.
In September, there was an unusual 26.4 per cent drop in money in circulation, the third month that there was a negative annual growth in currency outside banks.

For More of This and Other Stories, Grab Your Copy of the Standard Newspaper.

In his Madaraka Day Speech on June 1, CBK Governor Njoroge noted that his team had concluded that the Sh1,000 notes were being used for illicit financial flows in the country and the region. He also declared that the demonetisation process was a success.
“As the sun set on demonetisation on September 30, 2019, inflation, the exchange rate and other key macroeconomic indicators remained stable,” said Dr Njoroge. “There were no last-minute panic queues outside banking halls. The awareness campaign had been effective and ordinary Kenyans had exchanged their notes in good time.” 

SEE ALSO :Facebook says Libra won’t be controlled by a single company

Ninety days after the process was unveiled, unbanked money dropped by almost a third in what was seen as a pointer to desperation by Kenyans — some of whom had hidden their hard-earned and in some instances illicit cash, in their homes — to beat the September 30 deadline.

Do not miss out on the latest news. Join the Standard Digital Telegram channel HERE.



Source link

Would you like to get published on this Popular Blog? You can now email Cyprian Nyakundi any breaking news, Exposes, story ideas, human interest articles or interesting videos on: [email protected] Videos and pictures can be sent to +254 710 280 973 on WhatsApp, Signal and Telegram.



Click to comment


You May Also Like


*Editor’s Note: This open letter to Safaricom has been published as received. No redactions have taken place to avoid legal issues pending a court...


  These pictures you are about to view calls to heart the need to be extremely careful about what you do in the  secret...


This is an intervention for Victoria Rubadiri so as to help her revert back to factory settings. We notice your slow drift away into...


Caption : Edwin Kigen Who was Murdered in Madaraka Estate. We demand for answers from Boinnet ! Another young man may have been brutally assaulted and...

Copyright © 2020 Cyprian Is Nyakundi.