Central Bank counter rumours on 500/- notes

THE Central Bank has dismissed as false reports circulating in some social media outlets that 500/- notes will no longer be used after 31st of December of this year.

The Central Bank Director of Banking, Marcian Kobello, said in a statement yesterday that the 500/-bill would continue to be used next year until it disappears in the circulation.

"Reports that the 500/- notes will no longer be used after 31st of December are false and should be dismissed," the statement reads in part adding the bank notes would remain as legal tender before it is gradually withdrawn in the circulation.

"The truth is the 500/- bill will continue in circulation alongside the 500/- coin until it disappears.

" The Central Bank introduced the 500/- coins in 2014 to replace the fast wearing 500/- bank notes. According to the Central Bank Governor, Prof Benno Ndulu, the decision followed complaints from people regarding the weakness of the green 500/- bill.

The Ministry of Finance and the Central Bank urged the public not to worry since the transition would save the government a great amount of money used often to replace worn out notes with the new ones.

The government said the decision to introduce the 500/- coins was based on durability of the 500/- note and thus saving costs incurred to print new notes every time the notes wear out.

Banknotes series in Tanzania are in the denominations of 500/-, 1,000/-, 2,000/-, 5,000/- and 10,000/-.

Daily News Source