Regulatory Alerts2022-06-01
Bank of Uganda Circular on Paper £20 and £50 Banknotes
The Bank of Uganda directed all commercial banks, credit institutions, microfinance deposit-taking institutions, forex bureaus, and money remittance businesses to address the impending withdrawal of paper £20 and £50 banknotes from circulation in the United Kingdom. Following reports that local financial institutions are rejecting these notes, the central bank highlighted their September 30, 2022 cessation date and directed entities to actively manage customer transactions. Affected institutions must promptly notify customers and implement necessary operational measures to ensure continued acceptance or proper handling of the transitioning currency.
BANK OF UGANDA
OFFICE OF THE EXECUTIVE DIRECTOR SUPERVISION
37-45 KAMPALA ROAD, P.O. BOX 7120, KAMPALA
DIRECT LINE: 256-414-230051 GENERAL LINE: 256-414-258441 Ext 2403 FAX LINE: 256-414-258515 TELEX: 256-414-61059
CABLES: UGABANK Email: info@bou.or.ug Website: www.bou.or.ug
EDS.306.2
January 19, 2022
Circular to all Commercial Banks, Credit Institutions, Microfinance Deposit-Taking Institutions, and Forex Bureaus and Money Remittance Businesses
Paper £20 and £50 Banknotes
Information available on the Bank of England website indicates that paper £20 and £50 notes will cease to be used on September 30, 2022. The Bank of Uganda will continue to monitor this development and provide further guidance at an appropriate time. Detailed information is available on https://www.bankofengland.co.uk/banknotes/exchanging-old-banknotes
Market information received by Bank of Uganda is that some Commercial Banks, Credit Institutions, Microfinance Deposit-Taking Institutions, and Forex Bureaus and Money Remittance Businesses are turning away customers with paper £20 and £50 notes.
This is to inform you of this development and request that you:
- Notify your respective customers accordingly.
- Take the necessary actions to manage this development.
[Signature]
Tumubweinee Twinemanzi (Dr.) Executive Director Supervision
Mission: To Foster Price Stability and a Sound Financial System | Vision: To be a Centre of Excellence in Upholding Macroeconomic Stability