News
BOJ to issue $5,000 bank note
Friday, May 15, 2009
THE Bank of Jamaica will in September issue a $5,000 bank note, which will bear the image of late former prime minister, Hugh Lawson Shearer.
The highest Jamaican note in circulation now is the $1,000 bill.
The new $5,000 bank note, which is $930 above the minimum wage of $4,070 per week, would at yesterday's trading rate be valued at US$56.19.
Derick Latibeaudiere, governor of the Bank of Jamaica, will officially launch the new bank note on Monday at the central bank in downtown Kingston.
"The launch will take the form of a presentation of a proof note, specially packaged, to Dr Denise Eldemire Shearer, widow of the late former prime minister of Jamaica, Hugh Lawson Shearer, whose portrait appears on the front of the note," the central bank said yesterday.
Yesterday, head of the Planning Institute of Jamaica Dr Wesley Hughes said the introduction of the $5,000 note will not affect inflation.
"It would not affect inflation because old notes would be retired in any event. We doubt there will be a positive effect on inflation and in any event that it does, we would do an evaluation," he told the Observer.
Financial analyst John Jackson agreed.
"It would not affect inflation because you will substitute new notes with old ones. It's not an increase in money supply."
Asked whether retailers would bump up prices in an attempt to get more for items close to but under $5,000: "I don't see that as happening because it could happen with $1,000 bill. Also, currently, money is so tight that people don't have that option," Jackson said.
On the upside, Jackson said the new note would save BOJ printing costs: "It is going to cut the cost of BOJ to print notes because it costs the same to print one (thousand dollar note), but currently they have to print five instead of one."
Aside from Shearer's portrait, the new $5,000 bill will also have pictures of various plants and a bird. The note is sand or khaki in colour according to Observer sources. Shearer served Jamaica as prime minister from 1967-72, succeeding Sir Donald Sangster.
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