BNM to reduce production of new RM1, RM5 banknotes

--Bank Negara Malaysia (BNM) is looking to reduce the production of new RM1 and RM5 banknotes for festive seasons in phases starting this Hari Raya Aidilfitri.

Its Assistant Governor Norzila Abdul Aziz said BNM will recycle fit banknotes of the RM1 and RM5 dominations to conserve the environment.

"Every year, BNM prints 500 million pieces of new money to fulfill demand during festive occasions.

"Imagine how much of the country's natural resources is being used and wasted, when it can be utilised for other purposes," she told a press conference here after launching the Going Green Using Recycled Fit Polymer Notes for The Festive Season.

Fit banknotes are those that meet the quality criteria and standards to remain in circulation.

Norzila said BNM will print 70 per cent of new RM1 banknotes and recycle 30 per cent, while for the RM5 banknote, 60 per cent will be recycled and the rest being new.

She also said polymer substrate was introduced in 2004 for the RM5 to enhance banknote durability and reduce wastage.

"It was widened to include the RM1 in 2012 when the RM5 polymer banknote proved effective.

"The RM1 and RM5 polymer banknotes are of a better quality and durable, with a lifespan of between two to three years, compared to the cotton-paper banknotes," she added.

She said the public should have no qualms about using fit banknotes for "duit raya" as only high quality banknotes were recycled.

"BNM will ensure the paper and polymer banknotes of all denominations are available in sufficient quantity to meet demand this festive season.

"The Association of Banks Malaysia and the Association of Islamic Banking Malaysia will encourage and assist in the recycling of fit banknotes by issuing them through bank branches and ATM's," Norzila added.