Bank of Uganda (BoU) has cautioned the public, florists and gifting stylists against the growing trend of decorating gifts with Uganda Shilling banknotes, warning that the practice damages currency and costs taxpayers millions in premature replacement.
The warning comes ahead of Valentine’s Day, a period that typically sees a surge in demand for money bouquets, cash cakes and other decorative gifts made using banknotes.
In a public notice, the central bank said practices such as gluing, taping, pinning or clipping banknotes into flower arrangements and gift displays amount to mutilation and defacement of currency, which is prohibited under Ugandan law.
BoU Director of Communications and Public Relations, Kenneth Egesa, said the practice renders banknotes unfit for use in banking systems, including ATMs and cash-counting machines, forcing the central bank to withdraw and replace them earlier than planned.
“The public is cautioned against any practice that mutilates, defaces or compromises the integrity of the Uganda Shilling,” Egesa said.
He added that florists, designers, gifting stylists and their clients are particularly being targeted due to their role in popularising the trend.
“Brand-new banknotes are often stuck together using glue, cello-tape, pins, clips and other adhesives as part of floral bouquets and gift displays. Once damaged in this way, the notes cannot be processed by cash-handling equipment,” he said.
According to BoU, damaged notes disrupt cash processing and distribution systems, including ATMs, and lead to the premature withdrawal of currency from circulation. This, in turn, increases the cost of printing new banknotes — a burden ultimately borne by the public.
The central bank clarified that it does not oppose the tradition of giving cash as a gift during occasions such as Valentine’s Day, weddings or birthdays, but stressed that money should be presented in a way that preserves its usability.
“Where cash is given as a gift, it should conform to the normal use of currency to facilitate payment transactions,” Egesa said.
BoU urged the public to consider alternative ways of presenting cash, such as envelopes, gift boxes or decorative holders that do not damage banknotes.
