Financial expert terms introduction of currency notes with security features as \u201cpositive development\u201d
\nKARACHI
\nThe State Bank of Pakistan (SBP) confirmed Monday it would issue new currency notes in line with the international security features soon, clarifying it would not be a disruptive switchover.
\n\u201cThe new notes will be printed with an international security feature. The notes will have new serial numbers, designs, and high-security features,\u201d the central bank\u2019s governor said.
\nProviding an expected time on when the new notes would be available, he said the framework for their design had already started and \u201cI hope that their design framework will be finalised by March\u201d.
\n\u201cHowever, we will not change the notes like India,\u201d SBP Governor Ahmad noted, a move that had sent shockwaves across one of the world\u2019s most populous nations when it demonitised in 2016.
\nWhen India demonetised a few years back, there was massive social unrest, and its quarterly GDP took a one-time hit, but since then it has continued to grow at high single-digit levels while payments have largely shifted to the digital medium. A consequence of this is muted inflation and mid-single-digit interest rates that spur economic growth.
\nSources familiar with the matter told Geo News that the central bank is considering the move due to complaints about fake currency notes in circulation.
\nKhurram Schehzad, CEO of the Alpha Beta Core financial advisory firm, said it would be premature to assess the SBP\u2019s decision at this moment, but termed the introduction of currency notes with new security features as a \u201cpositive development\u201d.
\nCommenting on the narrative that the introduction of new currency notes would address the issue of black money, Schehzad underscored that this couldn\u2019t be achieved as long as measures are taken to \u201ccancel out\u201d or at least reduce the amount of higher denomination currency notes in circulation.
\nStressing the need to assess the cash hoarded by the people, the financial expert underscored that the public, amid increased inflation, prefers to convert the cash into other forms such as property, cars, gold and foreign currencies.
\nIt needs to be assessed on what basis the higher denomination currency notes such as Rs5,000 is discontinued, he said. Such moves have not met notable success in India and other countries which have gone through demonetisation, the expert added.
\n\u201cIt is to be seen how the central bank moves forward, whether it\u2019s discontinuing the higher denomination currency notes, or is simply introducing new ones,\u201d he said.
\nIn response to a question on the effects on the economy, Schehzad highlighted the need for the SBP to contain the printing of currency notes which is a key driving factor behind the increasing inflation.<\/p>\n","protected":false},"excerpt":{"rendered":"
Financial expert terms introduction of currency notes with security features as \u201cpositive development\u201d KARACHI The State Bank of Pakistan (SBP) confirmed Monday it would issue new currency notes in line with the international security features soon, clarifying it would not be a disruptive switchover. \u201cThe new notes will be printed with an international security feature. […]<\/p>\n","protected":false},"author":2,"featured_media":383935,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-383925","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news"},"yoast_head":"\n