By Ritah Kemigisa
The Bank of Uganda (BoU) has lowered the amount that can be written on cheques for five currencies by a half.
The affected currencies include; Uganda and Kenya shillings, the US Dollar, Euro and the Pound Sterling.
In a July 14th circular to all commercial banks, credit institutions, and microfinance deposit-taking institutions issued by the deputy governor, Michael Atingi Ego, the new changes will see the cheque value limit amount for the Uganda Shilling reduced from sh20m to sh10m.
The cheque value limit for the Dollar has reduced from $5,500 to $2,750; for the Euro from 4,500 to 2,250; the Pound from 4,400 to 2,200 while the Kenyan Shilling from 600,000 to 300,000.
Ego adds that the new changes that are provided for under section 4.3 of the clearinghouse rules and procedures came into force after they received a no objection from the Uganda Bankers Association.
Cheques issued with the old limit threshold will effective today cease to be honoured while the new changes take effect on July 17th.