State Bank rejects rumours

KARACHI: The State Bank of Pakistan (SBP) on Monday rejected rumours that it would discontinue Rs5000 denomination banknote, a statement said.

“The SBP board has not submitted any recommendation for demonetisation or discontinuation of Rs5,000 or any other banknote to the federal government or cabinet,” the SBP said.

It is also clarified that the SBP Act, 1956 clearly defines the roles and responsibilities of different institutions, including SBP for issuance, circulation and demonetisation or cancellation of banknotes.

Specifically, section 25 of the act requires a recommendation of the SBP board of directors before the federal government makes any decision about the demonetisation or cancellation of banknotes.

Further, in case of demonetisation of any banknote, the central bank announced the same well in advance and provides ample time to the public to change the currency under demonetisation process.

The SBP places all such announcements on its website and circulates the same through its social media platforms, as well, the statement said. The public is; therefore, advised not to pay heed to any such rumours, which are aimed at creating unnecessary hype and anxiety.