The Bank of Namibia (BoN) says it will revamp the nation’s currency, incorporating advanced security features into banknotes and coins to combat evolving counterfeiting techniques and ensure durability.
The apex bank Governor Johannes !Gawaxab said the upgraded series is slated for a 2025 launch following a comprehensive review in 2022.
“Ensuring that our banknotes and coins are relevant remains the pre-occupation of the Bank of Namibia. The Bank needs to ensure our currency is counterfeit resilient to maintain the public’s trust and the integrity of our currency,” he said during the launch of the N$100 banknote on Thursday in the //Kharas Region.
The updated N$100 banknote now bears the signature of the current Governor, requiring public notification due to this alteration in a key security feature.
Apart from this change and the updated year of print, all other security features remain the same. The central bank said to ensure authenticity, individuals are advised to utilise the “look, feel, tilt” method when examining Namibian banknotes.
The first series of Namibian banknotes and coins debuted in 1993, now marking 30 years in circulation. In 2012, the Bank introduced a second family of banknotes with advanced security features, currently in use.
“The coins have remained unchanged since 1993. It’s essential to continually enhance security features on both banknotes and coins to maintain top quality and security standards. International best practices suggest central banks should review their currency every six to eight years to align with economic activities and address any management challenges,” said the Governor.
Meanwhile, !Gawaxab said BoN is contemplating a Central Bank Digital Currency (CBDC), which will be introduced only if it’s necessary and proportional for currency security and stability.
He said this move aims to prioritise consumer benefits and risk management in adopting new financial technologies.
“Ultimately, our goal is to create an environment where consumers can benefit from new innovative financial technologies while also being protected from potential risks,” he added.
The Governor highlighted the importance of physical current noting that it symbolises trust and the exchange of value, providing reliability amid a digital age.
“During crises like natural disasters or economic downturns, physical cash sees a notable increase as people seek tangible security. This behaviour was evident during the COVID-19 lockdown, with Namibia experiencing a surge in cash demand,” he said.
In 2021, the total value of currency in circulation rose from N$4.71 billion to N$4.76 billion, highlighting the enduring importance of physical currency in ensuring financial resilience, he explained.
“The BoN shoulders the responsibility of issuing money with the primary objective of maintaining price stability. Over the past 34 years, we have diligently discharged this mandate. Yet, the global banking arena is currently experiencing rapid and significant shifts driven by digital technology. This evolution reshapes how money is managed, with digital alternatives emerging to challenge traditional banking practices,” said !Gawaxab.
