The Bank of Uganda (BoU) has cautioned members of the public against using currency banknotes and coins to create decorative gifts, warning that the practice damages money and disrupts the country’s cash circulation system ahead of Valentine’s Day.
In a public notice, the central bank singled out florists, designers, gifting stylists and their clients, urging them to desist from using Uganda shilling banknotes in bouquets and similar creations, especially where brand-new notes are glued, taped, pinned or clipped together.
“The public is cautioned against any practice that mutilates, defaces, or compromises the integrity of Uganda shilling currency,” BoU said in the statement.
According to the bank, such practices render banknotes unusable in cash-processing infrastructure, including counting machines and automated teller machines, creating inefficiencies within the financial system and imposing unnecessary costs on the public.
“This practice destroys the utility of banknotes, making them unusable in cash processing and distribution equipment such as cash counting machines and ATMs, which are a critical part of the cash distribution system,” the statement reads.
It adds, “It also results in the premature withdrawal from circulation and replacement of banknotes at an avoidable cost to the public.”
BoU clarified that while giving cash as a gift is not prohibited, it must be done in a manner that preserves the normal form and intended use of currency.
“Whereas the Bank does not object to using cash as a gift, this exchange should conform to the normal use of currency to facilitate payment transactions,” the bank emphasised.
Kenneth Egesa, the Director of Communications and Public Relations at the Bank of Uganda, said the advisory is part of the central bank’s mandate to protect the integrity of the national currency.
“Bank of Uganda remains committed to safeguarding the integrity of the national currency in circulation so that it continues to serve effectively as a medium of exchange and a store of value,” Egesa said.
He encouraged the public to seek guidance from the central bank where clarification is required, as BoU continues to monitor practices that may compromise the proper use of currency.
