Physical currency still widely used: BNM
Published on: Monday, April 06, 2020
By: NST
File photo from Bernama.
Kuala Lumpur: Physical currency continues to be widely used in the Malaysian economy, with about RM114.1 billion of banknotes and coins in circulation as at end-2019, Bank Negara Malaysia said.Bank Negara, in its 2019 Annual Report, said currency in circulation (CIC) had grown 3.6 per cent in 2019, markedly lower than the five-year average of 7.9 per cent.
ADVERTISEMENT
However, the country’s CIC, as a share of gross domestic product (GDP), had hovered between 6.5 per cent and 7.0 per cent in the last five years.
“While the country’s CIC continues to grow in tandem with the economy, there are clear signs of slower growth with greater adoption of electronic payments for economic transactions,” it said.
Bank Negara said it had procured banknotes from international printers through competitive tender and mint coins at its Kilang Wang located in Shah Alam, to meet the needs of the economy.
“We minted nearly one billion coins in 2019. We also conduct on-site assessment on the capability and controls of qualified printers,” it added.
ADVERTISEMENT
The central bank said 2019 saw the passage of the currency bill had been presented by the Dewan Rakyat and Dewan Negara last December.
It said the new currency law – Currency Act 2020 – will complement the Central Bank of Malaysia Act 2009 in setting out a comprehensive regulatory and operational framework for the management of currency operations.
ADVERTISEMENT
“A key enhancement of the law are provisions for the bank to oversee and regulate cash-in-transit companies (CITs) that are involved in currency processing activities.”
As CITs process about 70 per cent of circulated banknotes, Bank Negara said stronger oversight arrangements for currency processors will serve to ensure high standards for currency processing to maintain the high quality and integrity of CIC.Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
