The Financial institution of England (BoE) has lately issued a reminder that the £20 and £50 paper notes will now not be authorized tender from 1 October 2022. First introduced by the BoE again in June 2021, because of this the paper notes will quickly not be accepted for fee of products or companies within the UK.
With just a little over two months to the deadline (72 days from right now to be actual), Malaysians who nonetheless have £20 and £50 paper notes in hand from earlier journeys to the UK might need to take motion quickly – particularly in the event you shouldn’t have a UK checking account. Geographical challenges shall be a problem, however one choice could be to alternate them at a cash changer. A examine by our group with a cash changer within the Klang Valley revealed that it’s nonetheless accepting £20 and £50 paper notes solely till this August, however do examine in case your common cash changer is providing the identical.
Alternatively, you may additionally alternate your notes by sending them through put up to the BoE’s London headquarters, and the BoE will switch the equal quantity to your checking account. As a safety measure, you’re suggested to insure the notes in opposition to loss or theft. For transfers to an abroad checking account (together with Malaysia), the BoE will switch the equal quantity through SWIFT switch. Nonetheless, that is solely potential you probably have a international forex account, because the BoE can’t switch to a checking account that doesn’t settle for GBP. Additionally, you will want to supply your checking account’s SWIFT code along with your checking account quantity. Chances are you’ll discover extra details about it right here.
Lastly, you may additionally alternate the paper notes in individual on the Financial institution of England’s headquarters in London. This selection will stay potential even after the 30 September deadline.
For those who do personal a UK checking account, your state of affairs won’t be as difficult because the BoE states that many banks within the UK will proceed to just accept the paper notes as deposits even after the 30 September deadline. Equally, some posts places of work may also proceed to just accept paper notes as deposits into financial institution accounts accepted by them.
The push to take away the £20 and £50 paper notes earlier than the deadline shall be intense, as there are nonetheless billions of kilos value of them nonetheless remaining in circulation. In line with the BoE, there are 314 million £20 paper notes (as of 27 Might 2022) and 163 million £50 paper notes (as of 10 June 2022) nonetheless in circulation, with a mixed worth of £14.5 billion.
The £20 and £50 paper notes are the final of their type within the UK. The BoE had begun shifting to polymer notes since 2016 as they arrive with improved security measures and are extra sturdy. With the addition of the £50 polymer notice final 12 months, all banknotes (£5, £10, £20, and £50) issued by the BoE are actually printed on polymer.
(Sources: Financial institution of England [1, 2], Bloomberg)
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