Senior reporter
The Central Bank’s announcement that it will introduce a new $100 polymer note by the end of this year has brought mixed reactions from the public.
Since the Business Guardian reported on the issue on Thursday, the news has gone viral, with hundreds of people raising concerns about the cost and why there is a need for a new blue bill at this time.
In its latest strategic plan, the bank said after five years, it is planning to introduce the 2024 series of the $100 banknote around December.
“This note will be very similar to the current note (2019 series) while adding new security features,” it said, as it also noted that in December 2019, the $100 banknote was issued, the first in the current suite (or family) of polymer banknotes.
Contacted yesterday for further clarification, the Central Bank noted that central banks generally order notes and coins from suppliers on an annual basis to distribute to banks.
“As part of the normal process across the world, the designs are adjusted periodically, taking into account ongoing developments in technology and security features,” the bank said.
“In this case, after five years, we will have the 2024 $100 banknote. The only change will be an enhanced ‘security strip’ incorporating the Bird of Paradise. So, the look and feel will be similar to the current banknote but the change will be obvious.”
On the cost of the changeover, the bank said it was unable to give details of the contract price.
However, it noted that De La Rue International Ltd will supply the new notes at a cost (including design changes) “that is not higher than the current cost of the existing $100 banknote”.
The bank said it expects the new banknotes in December 2024 or January 2025 and will share the design and features with the public and banks over the next few months to ensure a smooth transition.
The bank emphasised that the notes will not be demonetised, as the current notes will continue in use “until they are no longer fit for circulation”.
Contacted on the changeover, economist Dr Marlene Attzs said people need to understand that one of the core functions of the Central Bank of T&T is to safeguard the confidence and the integrity of the financial system, including providing oversight on currency in circulation.
“So, if in the discharge of that function, the bank determines it is necessary to replace notes then so be it. It is simply living up to its responsibility,” she said.
Attzs also outlined some of the reasons why the Central Bank may decide to change the $100 note.
“It could simply be there are some advanced security features the bank may wish to include to deter counterfeiting and thereby enhance the integrity of the note. They might also want to manage the wear and tear of the notes in circulation because we know when the polymers came out in 2019, everyone was very cautious, it fits very snugly into the wallet as the case might be. “Maybe the bank has determined that because of the durability and the wear and tear, they might want to change out the notes and there is also the question of the improved design to improve accessibility for our differently-abled persons, particularly the visually impaired,” she said.
Meanwhile, economist Dr Ronald Ramkissoon said it was “common practice in T&T” that after a while, currencies become dated either because of technology or use from “hand to hand”.
In this regard, he applauded the Central Bank for wanting to keep pace with technology and to ensure the new notes would be “far more difficult” to replicate.
“It suggests that the Central Bank is actually doing its work in respect of seeing when currency has outlived its time and when a note needs to be replaced,” Ramkissoon explained.
He advised that it could cost the society more if the old notes are not changed as required.
“There are costs to the society that the society incurs when bad currency is in use, so we have to trade-off the cost of new currency vis-à-vis the cost of keeping the old currency and I am sure that the Central Bank would have done their homework and they would have realised that it is time now to change the currency for more than one reason...we must understand that the loss we could be incurring and chances are they are much larger than the cost being incurred at the present time,” he said.
Confederation of Regional Business Chambers chairman Vivek Charran said he hoped there would not be any long lines or confusion at the central or commercial banks when the change of the new note takes place.
However, because the notes are not being demonetised, citizens will not have to return old notes this time around.
Charran said he believed that now was not the time to enact a change in currency, given the fact that the bills were recently changed.
Guardian Media also reached out to the Bankers Association of T&T(BATT) seeking comments on the issue and whether ATMs would be ready in time to dispense the new $100 note. However, no response was provided.
There were also debates on the changeover online.
One person commented, “Wow we have money to change money in an economy that’s in a crisis...my question is it necessary at this time.”
Another posted, “I hope this new $100 lasts longer in our pockets.... cuz I can’t see the point of it blasted changing. What new technology has come out since the last upgrade of the $100 note? Is it that the Central Bank is saying they didn’t get it right the first time?”