SA IS mostly self-sufficient in the production of its bank notes and coins, with close to 90% produced domestically, Finance Minister Pravin Gordhan has revealed.
Gordhan said in reply to a question by DA MP Alan R McLoughlin (on the basis of information provided by the Reserve Bank) that a Europe-based service provider supplied the remainder of the requirements.
Total costs for the currency produced offshore ranged between about R150m and R180m a year between 2012-13 and 2014-15.
"The production costs per unit externally ranged below R1 in the 2015-16 financial year. The production cost per unit is determined by the denominational values and volumes that are ordered, which might differ from year to year, and is influenced by factors such as the exchange rate. The costs do not vary significantly from domestic production," the minister said.
Private charter flights are used to transport the bank notes and coins on the basis of security and cost considerations. This cost R125m in 2012-13, R147m in 2013-14 and R53m in 2014-15.
"SA currently does not have long-haul heavy-lift aircraft available to transport the required volumes of bank notes in a single flight which would not require refuelling stopovers," Gordhan said.
"Furthermore, the limited number of two to three flights per year does not warrant the purchase of an aircraft.
"Air chartering for bank note transport is an international common practice by central banks," Gordhan said.
Picture: REUTERS
SA IS mostly self-sufficient in the production of its bank notes and coins, with close to 90% produced domestically, Finance Minister Pravin Gordhan has revealed.
Gordhan said in reply to a question by DA MP Alan R McLoughlin (on the basis of information provided by the Reserve Bank) that a Europe-based service provider supplied the remainder of the requirements.
Total costs for the currency produced offshore ranged between about R150m and R180m a year between 2012-13 and 2014-15.
"The production costs per unit externally ranged below R1 in the 2015-16 financial year. The production cost per unit is determined by the denominational values and volumes that are ordered, which might differ from year to year, and is influenced by factors such as the exchange rate. The costs do not vary significantly from domestic production," the minister said.
Private charter flights are used to transport the bank notes and coins on the basis of security and cost considerations. This cost R125m in 2012-13, R147m in 2013-14 and R53m in 2014-15.
"SA currently does not have long-haul heavy-lift aircraft available to transport the required volumes of bank notes in a single flight which would not require refuelling stopovers," Gordhan said.
"Furthermore, the limited number of two to three flights per year does not warrant the purchase of an aircraft.
"Air chartering for bank note transport is an international common practice by central banks," Gordhan said.
