In an effort to cut carbon emissions, the Monetary Authority of Singapore (MAS) has encouraged the public to consider switching to "Fit for Gifting" notes (Fit notes).
Fit notes are used banknotes regarded to be in good condition and appropriate for recirculation.
MAS claimed in a news statement on December 6 that the condition of these bills has been checked by banknote processing equipment and that they are of comparable quality to those obtained through automated teller machines.
The Fit currency will be issued in all denominations.
Additional information will be provided closer to Chinese New Year 2023. (CNY).
Annually, MAS issues close to 100 million new notes for CNY and other holiday occasions.
These new notes are generally used once during CNY before being returned to MAS after being deposited by consumers.
While MAS attempts to recycle returned currency, such as by replacing notes that are torn, dirty, or otherwise unidentifiable, there is still a substantial quantity of surplus currency.
The excess cash is eventually destroyed before its useful life expires.
According to the MAS analysis, the carbon emissions resulting from the issuing of extra new notes are equivalent to the powering of 430 four-room HDB apartments or the planting of 10,000 trees.
Producing fresh notes for holiday gifts that would be swiftly discarded is not eco-friendly.
MAS stated that this goes against Singapore's goal of achieving net-zero carbon emissions by 2050.
In addition, MAS will cease issuing "as good as new" S$2 notes beginning in CNY 2023.
These S$2 notes are exchanged during CNYs before being returned to MAS; the additional round of machine processing required for these notes to be reused in subsequent CNYs results in carbon emissions.
The "good as new" S$2 notes were introduced in 2013 to limit the number of newly printed S$2 bills.
Instead of new notes, MAS and The Association of Banks in Singapore (ABS) urge the usage of Fit notes and e-hong baos.
Those who favor handing out real hong baos can consider switching to Fit notes.
The MAS and banks will collaborate to make Fit notes more available to the general people.
MAS has observed an increase in the use of e-hong baos for holiday gifts. In CNY 2022, there were 10% more individuals utilizing e-hong baos than in CNY 2021.
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