Regulatory Alerts1996-08-06
Added · Updated
Notice No. 012/GGBM/96 of 21 November - Standards and Procedures for the Exchange of Notes Unfit for Circulation
The Bank of Mozambique establishes standards for exchanging Metical notes unfit for circulation, defining them as torn, taped, altered, or significantly worn. Unfit notes retain full legal tender status and must be accepted for payments. The Bank mandates full valuation for notes retaining at least two-thirds of their surface with a serial number, and half valuation for fragments comprising at least half the surface with a serial number. Commercial banks and the public must organize cash deposits according to these valuation criteria.
BANCO DE MOÇAMBIQUE NOTICE NO. 012/GGBM/96 SUBJECT: "STANDARDS AND PROCEDURES FOR THE EXCHANGE OF NOTES UNFIT FOR CIRCULATION"
The Bank of Mozambique acknowledges the efforts made by society in conserving Metical notes, aiming to dignify the national currency. However, anomalous situations, beyond the control of their holders, have been observed, which have contributed to their wear and tear, rendering them unfit for circulation, thus recommending their exchange. Having become aware of information reporting irregularities in the exchange process, it is urgent to adopt standards and procedures that protect holders and encourage good conservation, to enhance the value of our currency. In these terms, using the powers conferred upon me by Law No. 1/92 of January 3, I determine:
ARTICLE 1 UNFIT NOTES Notes unfit for circulation are considered to be all Metical notes that present the following conditions:
- Torn or missing any fragment;
- Taped with adhesive tape or in any other way;
- With erasures or scraping of series or numbers;
- With significant alteration in tone resulting from wear due to excessive use;
- With writings, grease stains, or other clearly visible marks;
ARTICLE 2 DISCHARGE POWER OF UNFIT NOTES Notes unfit for circulation, as defined in paragraph 1 of this NOTICE, maintain their legal tender status and full discharge power throughout the national territory, and must be accepted for payments.
ARTICLE 3 EXCHANGE OF UNFIT NOTES BY COMPANIES AND THE PUBLIC
- To facilitate the collection process by the Bank of Mozambique of unfit notes, the cash to be deposited by companies and the general public in commercial banks should be organized by denomination and respect the valuation criteria referred to in Article 5 of this Notice.
- In localities distant from banks, commercial establishments should normally accept in payment the unfit notes for circulation presented by the public, observing the valuation criteria referred to in Article 5 of this Notice.
ARTICLE 4 EXCHANGE OF UNFIT NOTES BY COMMERCIAL BANKS Commercial banks should organize their cash to be deposited at the Bank of Mozambique taking into account the stipulated in paragraph 1 of Article 3 of this Notice.
ARTICLE 5 VALUATION CRITERIA Unfit notes for circulation will always be exchanged according to the following valuation criteria: 1 – FULL VALUATION: Notes are valued in full if they have an intact surface (continuous and whole), never less than 2/3 (two-thirds) of the note, with at least one serial number or when the fragments complete the total surface of the same note. 2 – HALF VALUATION: Notes in the form of fragments that complete at least half of the surface and contain a serial number are valued at half their value.
ARTICLE 6 CLARIFICATIONS Doubts arising in the interpretation and application of this Notice will be clarified by the Issuance and Treasury Department of the Bank of Mozambique. Maputo, November 21, 1996. THE GOVERNOR Adriano Afonso Maleiane