The Bank Of Uganda has suspended the conversion of Kenyan currency on the local market, Nile Post has learnt.
According to a statement from Bank Of Uganda’s acting executive director in charge of Operations, Charles Malinga Akol, Bank Of Uganda was informed by the Central Bank Of Kenya (CBK) that Kenya has issued a new series of Kenya bank notes as a way of combating illicit flows and counterfeits into Kenya.
“The Central Bank Of Kenya has informed Bank Of Uganda that they have issued a new series of Kenya banknotes effective 31st May 2019 with a view of combating illicit flows and counterfeits into Kenya. CBK has also suspended currency conversion and repatriation of Kenya currency,” Malinga said.
He added that the Bank Of Uganda will,according to the new developments,not accept Kenya Shillings at its counters with immediate effect.
The Bank Of Uganda has also advised banks to subject all flows from and into Kenya to enhanced due diligence.
Kenya, on 1st June unveiled a new currency following the decision to withdraw the current notes from circulation by 1st October, 2019. Changing Kenyan currency from old to new banknotes call only be done in Kenya for now.