…Guyana’s dollar value remains the same
THE Bank of Guyana (BOG) yesterday unveiled a new denomination in the local currency, a $5,000 note, which is expected to be introduced into circulation come December 9.
Finance Minister Dr. Ashni Singh, at the launch, made it clear that the value of the Guyana dollar remains the same, unaffected by the new note’s introduction.
In the conference room of the BOG, he said: “This really just represents a new denomination. That is to say that our dollar has exactly the same value today, as it did yesterday.”
Singh maintained that the $5,000 note represents an important addition to the range of currency in use.
However, even with the introduction of the new note, the Finance Minister called for the reduction of cash use, particularly since the technology exists to do so.
He pointed to the downside of carrying around cash, the possibility of falling victim to robbery being one of the foremost cons.
Singh said, “There really is no need, in today’s world, to be handling, retaining and carrying large volumes of cash…today’s world is one where it is not necessary for an individual to be carrying large volumes of cash. We have, today, a mature banking system, one that has considerable reach.”
The minister added that in addition to technology, the facility of cheques and cheque books also exists.
“There is much room for us to make greater use of the banking system and rely much less on cash,” he said.
Singh also urged the Central Bank to encourage the use of reduced cash.
He said, “We need to reflect on a more concerted effort, encouraging a migration from the dominance of cash in our economy.”
He added that the economic growth Guyana has seen since 1996, the year when the $1,000 note was introduced, has warranted the introduction of the new note.
“If you look at our key economic and financial statistics, you will take note of how the economy has grown,” Singh said.
The Finance Minister cited statistics from 1996 to 2013 to underscore the growth, including Guyana’s nominal Gross Domestic Product (GDP), which has moved from $94B to $631B; the size of the national budget moving from $47B to over $200B; a 438 per cent increase in commercial banks’ deposits; a 380 per cent increase in private sector credit; and the move in the public sector’s minimum wage from $7,337 to $37,687 – indicators of growth at both the macro and micro economic levels.
“Over the years, there has been growth in the economy….inevitably, this has brought with it the expected increase in the number of transactions, as a consequence of which the issuance of a new denomination has become necessary,” he said.
Deputy Governor of the BOG, Gobind Ganga, was on hand at the launch to go through the features of the new note.
He explained that the note has the Bank of Guyana logo and the map of Guyana on the front and Guyana’s rainforest and national bird on the back.
There are also several distinct features, including a water-mark, the macaw and value of the note. When tilted, the colour of the value shifts from magenta to green and the rolling bar moves up and down, a holographic stripe, when tilted at an angle the image of a jaguar can be seen; the value of the note appears when the note is held up to the light, a blind mark for the visually impaired and partially sighted. (right of note), a dual track, two track thread with optically variable and metallic print properties (back), an intaglio print, a distinctive raised feel; and novel numbering, progressively larger numbers.
