on all the coins, the r1 coin features the national flag instead of the coat of arms. i want to emphasise that the upgraded banknotes and coin will have the same value as the current banknotes and coin in circulation, and i want to encourage the public to transact with them. cash plays a significant role in our lives ; it is the responsibility of the sarb to ensure that the public is protected by regularly revisiting its technical and security features, and to produce currency that is in line with global best practice, is credible and trusted. the currency was last upgraded in 2018 when enhanced security features on the nelson mandela centenary banknote series were added. internationally, it is regarded as best practice for central banks to upgrade the security features on their banknotes every six to eight years. this is to combat counterfeiting, which diminishes the value of real money, robs countries worldwide of billions of their currency annually, and tarnishes the credibility of a currency, thereby impacting negatively on the growth of an economy. banknotes and coin remain a critical payment instrument that provide south africans access to formal and informal markets. cash is familiar, inclusive and continues to be used across sectors of society. it is also considered to be a safe haven during times of crisis and is relied upon when other forms of payment are not as easily accessible. it is vital in the functioning of our economy. a public awareness campaign on the changes made to our currency is underway and will be in circulation from 4 may 2023. denominations of both the banknotes and coin will be introduced incrementally. the changes to the banknotes and coin can also been seen on the sarb currency app, which is free to download, and i urge you to do so. our banknotes and coin echo our rich and complex tapestry of history, heritage, people and culture. when you transact with the upgraded banknotes and coin, take a moment to reflect on the beautiful designs and how interconnected we are as a society and people. 3 / 3 bis - central bankers'speeches

level of real wages after two years is 0. 4 % higher than what it would have been without the increase in competition. the next slide shows how the effects of increased competition propagate in the economy. in the long run, increased competition boosts production, consumption, and employment. obviously, the increase in competition does not benefit every agent in the economy. there is a decrease in the profits of the firms that face a reduction in their monopoly power. also, the short run developments are affected by the fact that resources shift from production of consumer goods to production of investment goods. this is because there is an early increase in investment due to the need for a larger capital stock to support the long - run increase in the level of gdp. indeed, consumption is decreased in the short run. however, in the long run it increases by almost as much as gdp. bayoumi, tamim – laxton, douglas – pesenti, paolo ( 2004 ) : benefits and spillovers of greater competition in europe : a macroeconomic assessment. nber working paper no. 10416. of course, these model simulations only provide rough estimates of the effects of economic reforms. however, the qualitative results are clear : an increase in competition boosts gdp and welfare. one should also keep in mind that these results are only based on the direct effects that the degree of competition has on resource allocation. as i mentioned earlier, competition also increases innovation and thereby productivity. this effect comes on top of those indicated by the studies just discussed. * * * as i already pointed out, the growth of labour productivity in the service sector has been slower in europe than in the u. s., and the financial services production is among the sectors with the largest differences in productivity performance. moreover, when discussing europe's growth potential, the development of the financial services sector is far more important than what its direct contribution to productivity growth would suggest. the development of financial services is crucial to the dynamism of europe's economy. the function of financial services and financial markets in the economy is twofold. first, banks, capital markets, and other parts of the financial system play a central role in evaluating, trimming, and promoting innovations and business ideas. in this way, the financial sector takes part in developing the economy, while at the same time it acts as an intermediary supplying financing to those who need it. the second central task of the financial sector is related to payment systems.