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Economy

Mauritius plans upgraded 2,000-rupee notes to combat fakes

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Mauritius will replace its 2,000-rupee banknotes with new bills that have enhanced security features, after counterfeiting undermined confidence in the currency, Prime Minister Pravind Jugnauth said.

Wednesday 05, December 2018

(Bloomberg)--The announcement comes five months after a commission of inquiry into drug trafficking on the Indian Ocean island nation recommended the government issue upgraded bank notes to help fight money laundering. Bank of Mauritius Governor Yandraduth Googoolye said last month the central bank is stepping up cooperation with the police to combat illicit flows.

The bank will begin issuing the upgraded bill from Wednesday, Jugnauth said in a statement emailed Tuesday from the capital, Port Louis. Existing notes will cease to be legal tender from 1 February, and a verification process is being introduced to ensure the new system isn’t abused, he said.

“The verification of the existing Rs 2000 paper banknotes being exchanged is in line with the bank’s endeavor to fight counterfeiting and money laundering,” Googoolye said at a briefing in Port Louis.

Counterfeiting led banks to reduce the number of 2,000-rupee notes in circulation to MUR 2.55 billion ($74.3 million) in October, from MUR 4.49 billion a year earlier, according to central bank data.

TAGS : Bank of Mauritius, Yandraduth Googoolye, Pravind Jugnauth, counterfeit

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