Bank of England Withdraw £50 from Circulation

The Bank of England will be withdrawing the GBP50 from circulation, a circular from the Central Bank of Nigeria (CBN) released yesterday said.CBN Acting Director, Trade and Exchange, J.O. Ajewole, who signed the circular addressed to all authorised dealers and the general public, said the Bank of England will be withdrawing the GBP50 bill with the portrait of Sir John Houblon from circulation. He said the bill will cease to be legal tender with effect from April 30.Ajewole advised authorised dealers in possession of the currency note and who wish to repatriate their stock to avail themselves of the services of Messrs Travelex Banknotes Ltd.

Meanwhile, Britain had earlier in the week, said a new £1 coin, billed by the Royal Mint as the “most secure coin in the world” is to be introduced in 2017.Bloomberg said the move comes amid concerns about the 30-year old coin’s vulnerability to counterfeiting, with an estimated 45 million forgeries in circulation. 

The new coin is based on the design of the old three penny bit, a 12-sided coin in circulation between 1937 and 1971.A competition will be held to decide what image to put on the “tails” side of the coin. In his Budget statement to the Commons, Chancellor George Osborne said: “The prerequisite of sound money is a sound currency.”He said the £1 coin was one of the oldest coins in circulation and had become “increasingly vulnerable to forgery”. “One in 30 pound coins is counterfeit, and that costs businesses and the taxpayer millions each year.“So I can announce that we will move to a new, highly secure, £1 coin. It will take three years. Our new pound coin will blend the security features of the future with inspiration from our past. In honour of our Queen, the coin will take the shape of one of the first coins she appeared on – the three penny bit.

The government said it would hold a detailed consultation on the impact of the change on businesses, which may face costs from having to change vending machines, supermarket trolleys and lockers at gyms and leisure centres. Some commentators have raised fears the new piece will not work smoothly in vending machines but the Royal Mint said the coin “will be expressly designed to fit existing mechanisms”. It said the move would increase public confidence in the UK’s currency and reduce costs for banks and other businesses.