The Central Bank of Egypt introduced the first ever 200 pound banknote earlier this month. Eman Youssef reports The new 200 pound denomination, which was already distributed by the CBE to other banks, will facilitate transfers of bulk cash and also satisfy customers' needs by providing diversity of denominations, says Rania Ahmed, operation manager at PNP Paripas Bank. Ahmed also expects that a 500 pound note will be issued soon. Ahmed told Al-Ahram Weekly that the CBE is "following in the footsteps of the euro and sterling pound, where high value denominations are circulated in paper notes." The decision was taken when the CBE realised how much it costs them to reprint lower value notes. The 200 pound notes are engraved with the picture of the Mosque of Qani Bay on one side and the Seated Scribe on the back, with a 1.5mm solid security thread, 3mm windowed security thread, the figure 200 as a latent image and registration device. This should make it easy to detect fake notes as it is impossible for forgers to secure the specialised paper on which currency notes are printed. The new notes will be more durable than lower value banknotes, which generally have a life of two years or less. Ali Lotfi, economy professor at Ain Shams University, said that the new notes were expected in light of international experience and higher prices. "High value notes can help reduce the inflation rate," said Lotfi. Hani Ahmed, of Emirates Bank, says the idea will have a good impact on tourism, as tourists will not have to handle so many banknotes. According to Ahmed, 5 and 10 pound notes will soon be history after the issuing of the higher value notes. "The cost of issuing and printing the low-value notes is much higher than their value," said Mohamed Kamal, owner of Exchange Company. Kamal emphasised that the decision came as a result of the high inflation rate of 12 per cent. He also said that this will reduce the purchasing power of the Egyptian pound. Kamal warned that the high- value paper notes might increase the risk of illegal shipment of cash money. The CBE will need to reduce the interval between the new series of notes in order to keep ahead of counterfeiters, according to Kamal. In fact, it is claimed that the interval between series would become so short that new notes would not have completed one life cycle before a further new series of notes was required. The idea of moving away from a cash economy has many supporters. But according to Ahmed, "ours being a cash- based society, circulation of currency notes in our country is faster than average, thereby reducing their life span substantially." The paper notes of high value will be an alternative for those who find it risky to use credit cards. The new LE200 banknote will take some time to be accepted by a public long used to dealing with small denomination currency units. Meanwhile, customers who make a major cash purchase will benefit from the new notes, as they will spend less time counting and won't have to carry around a huge bag of cash.
