Reserve Financial institution on R500 word and R10 coin for South Africa

As South Africans grapple with the rising value of inflation and elevated value of residing, there was a rising debate on whether or not the nation ought to take into account increased denominations of cash and notes.

The South African Reserve Financial institution informed BusinessTech that it’s continuously doing analysis to find out whether or not to transition into the upper denomination coin. This features a R10 and introducing increased denomination banknotes equivalent to R500, it stated.

“The outcomes of the (newest) examine revealed that South Africa will not be prepared for a R500 banknote and a number of the causes stipulated have been that the introduction is simply legitimate when the best denomination, R200 in our case, is essentially the most circulated banknote.

“That is nonetheless not the case in South Africa because the R100 denomination is essentially the most circulating banknote. The opposite purpose is whether or not the R200 remains to be used as a retailer of worth – which it’s – and subsequently doesn’t warrant a change,” the financial institution stated.

The Reserve Financial institution’s examine discovered that there’s an financial case for introducing a R10 coin – nonetheless, there is no such thing as a urge for food from the general public to introduce this coin, it stated.

In figuring out whether or not or to not transition to new denominations, the SARB considers the shopping for energy of the rand, the final development of inflation, and public notion.

Information printed on the finish of 2021 exhibits that, by way of quantity, the R100 denomination is the most well-liked with a median of 776.6 million bodily banknotes in circulation outdoors of the SARB between March 2020 and June 2021.

This was adopted by the R200 denomination, with a median of 307.3 million banknotes circulating throughout the identical interval.

“A lot of the different denominations of banknotes in problem remained comparatively secure throughout this era, whereas the variety of cash in circulation outdoors of the SARB by far exceeded these of banknotes, owing to the vary of small denominations,” the central financial institution stated.


Learn: How a lot that you must save to retire comfortably in South Africa

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