Malaysia’s Currency In Circulation Rises 5.5 Percent To RM170.7 Bln In 2024
KUALA LUMPUR, March 24 (Bernama) -- Malaysia’s currency in circulation (CIC) rose by 5.5 per cent year-on-year to RM170.7 billion as of Dec 31, 2024, reversing a 0.2 per cent decline in 2023, where it stood at RM161.8 billion.
Bank Negara Malaysia (BNM) said the demand for cash will continue despite the rising adoption of e-payments, driven by factors such as economic growth, the need for cash in emergencies and as a means of payment in areas where e-payments are unavailable.
“Although the payment landscape has changed considerably in recent years with the growth of e-payments, cash remains an important means of payment,” BNM said in its Annual Report 2024 was released today.
The central bank also emphasised that it constantly monitors and assesses emerging counterfeit threats and trends to ensure the integrity of CIC.
As of Dec 31, last year, the central bank reported that Malaysia’s counterfeit index stood at 1.7 parts per million (ppm), a slight increase from 1.6 ppm in 2023.
Despite this, the central bank said Malaysia’s counterfeit index remains comparatively lower than other benchmarked countries.
On Malaysia’s target to achieve net-zero emissions by 2050, BNM has implemented several sustainable initiatives throughout the currency ecosystem, including prioritising the issuance of fit banknotes, supplemented with new banknotes, particularly during festive seasons.
In 2024, BNM issued 2.5 billion banknotes nationwide with fit banknotes comprising 66 per cent of this volume.
As cash remains important for the foreseeable future, BNM has strengthened its collaboration with currency industry players to enhance the overall value chain of the currency ecosystem.
“This initiative leverages nationwide improvements in the industry’s currency distribution network and BNM’s experience handling the COVID-19 pandemic,” it said.
Going forward, BNM said it will continue to monitor developments in the currency ecosystem through supervisory and surveillance activities, while also introducing new sustainable initiatives.
-- BERNAMA