ANNEX I
Glossary of Terms
Backing
A fund of assets (external and/or local) usually required
by law to be maintained at a value equivalent to the total of notes
and coins issued and in circulation, and usually bearing interest.
Brilliant Uncirculated or Specimen Coins
Coins that have been set aside immediately after minting and
thus have a bright, untarnished surface without marks etc.; but they
have a quality of finish lower than that of proof coins.
De-legal Tender
Subject to the granting of a minimum statutory period of
notice, the issuing authority may call in any currency notes or
coins for exchange for a new series of notes and coins of equivalent
nominal face value. On the expiry of the period of notice, the notes
or coins concerned cease to be legal tender. The issuing authority
may at its discretion continue to exchange notes and coins for ones
of equivalent face value of the current series after they have
ceased to be legal tender.
Demonetisation
In this report, this term is used to signify an issuing
authority's final renunciation of all liability to give value for
notes or coins which have ceased to be legal tender but which have
not been handed in for redemption or exchange.
Legal Tender
Bank
The quality of legal tender is assigned to physical currency
by legislation, which prescribes that a creditor (including a vendor of goods or services) is obliged to accept such currency
in discharge of the obligation of the person tendering it. notes are always legal tender for a transaction of any amount,
whereas coins are normally limited to a maximum face value for
each transaction.