The Maldives Monetary Authority (MMA) has announced that it shredded MVR 22.9 million worth of worn-out banknotes in 2023, a measure aimed at maintaining the quality of currency in circulation.
According to the central bank, a total of 391,957 banknotes were destroyed last year, amounting to MVR 22,911,960. This routine action is part of the MMA’s efforts to ensure that only banknotes in good condition are in use, enhancing the efficiency and reliability of cash transactions.
The largest share of destroyed notes was the MVR 20 denomination, which constituted 39.9 percent of the total shredded banknotes. This was followed by the MVR 50 denomination. The high volume of these denominations indicates their extensive use and the consequent wear and tear they undergo.
Additionally, 19 percent of the shredded banknotes were in the MVR 100 denomination, while 13.5 percent were in the MVR 10 denomination. These figures highlight the central bank’s comprehensive approach to maintaining the currency’s quality across various denominations.
Regular destruction and replacement of old and worn-out banknotes are essential to preserving the currency’s integrity. By systematically removing damaged notes from circulation and replacing them with new ones, the MMA ensures the public’s confidence in the nation’s monetary system. This practice also helps in mitigating the risks of counterfeiting.
The process of shredding old notes and introducing new ones is crucial for maintaining the monetary system’s overall health and functionality.
