THE 500/- bank notes are wearing out more easily than others because they remain in circulation longer and are not properly cared, a Bank of Tanzania (BoT) official has said.
BoT Manager in Currency Department Jovent Rushaka, addressing reporters at the just ended seminar in Bagamoyo over the weekend, assured the public of the bank notes quality, saying the notes were of high quality and standard.
Responding to questions on the quality of the notes, particularly the 500/- denomination, the manager said the 500/- notes were the most transacted ant that it remained in circulation longer than the other notes.
"The 500/- notes are used in most of the retail transactions compared to others and are therefore susceptible to wear out easily," she said.
Another BoT official in the Currency Department, Ms Gloria Mwaikambo, said apart from being used more in transactions and remaining longer in circulation, the handling of low value bank notes was poor. "How we keep our notes matters a lot.
The 10,000/- and 5,000/- notes are the most cared, of course because of their high value and they are frequently sent back to banks as deposits," she said.
She said the degree of wearing out depended on the environment in which the banknotes were circulating, saying if the notes were exposed to wet materials, fats, oils or solvents, they wear out faster.
"Exposures to harmful environments are common in our retail consumer markets such as fish markets, butcheries, mama lishe, charcoal vendors and commuter buses as well as in workshops and garages where 500/- 1,000 and 2,000 notes are mostly used," she said.
She further said that banknotes circulating in remote parts of the country where banks have no presence, take longer periods before getting back into the banking system.