The National Bank of Rwanda (BNR) is withdrawing selected old banknote series, specifically Rwf500, Rwf1,000, Rwf2,000 and Rwf5,000 notes issued between 2004 and 2015, while newer banknotes of the same denominations remain valid. The deadline for exchanging the affected notes was initially set for November 1, according to a public notice issued by the central bank. However, BNR recently extended it by one month, giving holders until November 30 to exchange the withdrawn notes through financial institutions. ALSO READ: Central bank extends deadline for exchanging old banknotes But what is the reason behind the withdrawal of such banknotes? One of the main reasons is that the central bank wants to strengthen currency security and reduce the number of different versions of the same denominations circulating in the country. Nicole Muhire, Director of Currency Operations at BNR, said the decision followed a review of banknotes in circulation, which identified older series that needed to be withdrawn. “The main purpose of this exercise is to remove some series of currency that have been in circulation for a long time and retain those with updated security features,” she said. She added that the move also seeks to reduce the risk of counterfeiting, although she noted that the level of counterfeit currency in Rwanda remains very low. She also pointed out that the current exercise does not involve issuing new banknotes. Rather, the central bank is removing older series and retaining more recent ones that already have updated security features. ALSO READ: How fraudsters distribute fake currency The banknotes being withdrawn are specific issues of four denominations. These include: Rwf500 notes issued on July 1, 2004, and January 1, 2013, Rwf1,000 notes issued on July 1, 2004, and May 1, 2015, Rwf2,000 notes issued on October 31, 2007 and Rwf5,000 notes issued on April 1, 2004, and February 1, 2009. According to the central bank, newer banknotes have enhanced security features, including a colour-changing security thread that shifts from green to blue depending on the angle at which the note is held. This distinguishes them from older series being withdrawn. The Rwf2,000 and Rwf5,000 notes introduced in June 2024 also feature wider, windowed security threads containing microtext with the letters “BNR” and their respective denominations. Their watermarks, displaying the National Coat of Arms and “BNR”, have been repositioned to the right-hand side. Why only banknotes? The current exercise concerns paper banknotes and does not include coins. Muhire said the central bank had prioritised banknotes for now, adding that coins could be considered for replacement in the future if a review establishes the need. She also dismissed suggestions that the withdrawal is connected to Rwanda's transition towards a cashless economy. “This is not related to the cashless economy. It is simply an exercise to clean up the banknotes in circulation, remove those that are vulnerable and retain particular series,” she said. From December 1 after the deadline elapses, holders of these particular notes will have to exchange the affected notes through BNR's designated facilities, with the overall exchange exercise scheduled to end on March 1 next year.
