The Bank of Namibia was highly praised for the release of its new banknotes that debuted last May, and was even a finalist for 2013’s Best Currency Website. All was grand—until Namibians began to notice their banknotes were falling apart.
The Bank of Namibia announced it will soon be replacing the N$10 and N$20 banknotes after realizing the new notes were cracking after being folded several times, reported All Africa. Upon discovery, the central bank commenced further investigation. They decided to put new banknotes through extensive laboratory tests.
Ndangi Katoma, Bank of Nambiia’s director of strategic communications and financial sector development, told All Africa, “The investigation revealed that the main cause was a technical weakness in the paper used for the specific two denominations. This technical problem could not be picked up through the standard industry tests conducted on the notes when they were printed.
Upon determining the cause of the problem, the Bank of Namibia together with the international currency experts agreed on a technical solution,” Katoma said.
The central bank decided to redesign the national currency in response to Namibia’s counterfeit epidemic: a plague it shares with many other African countries. The country introduced banknotes with improved security measures to make replication difficult. Some of the new features included color-changing effects, raised prints and see-through features in the light.
After the release of new banknotes, the introduction was marred only a few weeks later by fraudsters. They released a circulation of matching new counterfeit notes into the market.
The date of Nambia’s new currency release has not yet been announced, but the central bank’s communication team is already working to educate the public about new improvements.
Bank of Namibia explained that the best defense against fraud and avoiding counterfeit currency is to properly inform Namibians about new security features. If citizens are familiar with new changes, they will be better equipped to recognize fake notes.
“This can only happen when the public understands the security features of the banknotes,” Katoma stated. This is a measure of effective public education.”
The banknotes will be made with new paper that has been tested extensively for durability. The notes will be released in limited quantity because the central bank believes the only way to test the adequacy is through public testing.
“This was necessary to ensure that the new improved banknotes are of good quality. As an additional precaution to enhance durability of the improved banknotes, it was also decided to move the diamond shape feature slightly to the right, outside the folding area.”
To read the full story at All Africa click here.
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