Bahrain introduces new banknotes
Manama, March 6, 2008
The Central Bank of Bahrain (CBB) is working with the financial services industry to ensure a smooth introduction of new Bahrain banknotes.
The new banknotes, which have new designs and added security features, will be issued in the existing denominations of BD20, BD10, BD5, BD1 and BD1/2. No change is being made to the coins in circulation, the bank said in a statement.
The CBB will begin releasing the new banknotes into circulation in the coming few weeks, at a date to be announced soon, said CBB’s executive director for banking operations Dr Abdul Rahman Saif.
The change to the new currency was necessitated by the enactment of the Central Bank of Bahrain and Financial Institutions Law (CBB Law), issued in September 2006, which provided for the creation of the Central Bank of Bahrain to succeed the now-defunct Bahrain Monetary Agency (BMA).
As the successor organisation of the BMA, the CBB assumed all the rights and obligations of the BMA. As such, the existing currency, bearing the name of the BMA, has remained a legal tender.
“The new currency reflects this significant change and each denomination of new banknotes bears the name of the Central Bank of Bahrain,” said Dr Saif.
Each denomination of new banknotes has a new design, while some denominations have a new colour as well. All of the new notes incorporate enhanced security features.
The existing currency will remain a legal tender until further notice from the CBB.
“The new banknotes and the existing banknotes will co-circulate for a period of time, to allow for all existing banknotes to be returned to the CBB in the normal course of business,” said Mr. Fahad Al-Arabi, head of vault at the CBB.
The CBB is working with all concerned parties to ensure a smooth and effective introduction and transition to the new currency, he said.
As a first step, the CBB has begun working with Bahrain’s retail banks to help them adjust their cash handling machines, such as automated teller machines (ATMs), to accept the new banknotes, the bank said. – TradeArabia News Service
