Destroyed notes fall in 2022 BUT cost of replacement concerns CBSI

The total value of notes processed and destroyed in 2022 fell by 16% to $104.6 million from $124.8 million in 2021, the latest CBSI Annual Report launched yesterday stated.

However, the bank says the high rate of notes being returned from circulation remained a subject of concern to the CBSI as the replacement costs continue to increase whilst the demand for fit and clean notes and ATM notes also rises.

It says this reflected poor handling of currency notes despite the on-going public awareness programs over the years on educating people on how to care for our currency notes.

The report states with the approval of the Central Bank’s Quality Banknote Policy, it is anticipated that the policy will be implemented in 2023 once the stakeholder consultations with institutions in Honiara and other Provincial centres are completed.

The Bank is expecting to see quality notes in circulation in our banking system and to the public from 2023 onwards. Meanwhile the report says during the year, the cobra machine which handles the sorting and destruction of mostly $50 and $100 notes has not been functioning although there were several visits and technical support from Cash Processing Solution Engineer, Australia and Kusters Engineer, Netherlands. As a result, all cash destructions for 2022 were done using the off-line shredder.

It says the technical issues with the cobra machine had been rectified and the engineers are now working on resolving the issues.

“This machine is an important investment for the Bank as it assists in improving the efficiency in cash processing over the years,” it says.