THE Bank of Jamaica (BOJ) said it issued $11.5-billion worth of the new polymer banknotes on Thursday, the first day the new notes were distributed to the public. The new notes that are being issued are set to, over time, replace $228 billion in notes that were in circulation as at Wednesday.

Natalie Haynes, deputy governor for banking and currency operations and payment system and money services oversight divisions at the central bank, told the Jamaica Observer that the a total of 11.8 million pieces of the new polymer notes were in circulation as at June 15, 2023.

She told the Caribbean Business Report that the new polymer notes comprised 56 per cent of the total value of notes issued on Thursday.

“We therefore expect this ratio to increase over the next six months into next year, and the following years,” Haynes said in response to queries about the roll-out of the new notes.

She reiterated that the central bank will continue to issue old notes based on what is ordered by the commercial banks.

“Banks may continue to order old notes until all ABMs [automated banking machines] are ready for accepting and dispensing polymer notes. Once all ABMs are ready, BOJ will cease issuing old notes.”

She said how quickly the new notes are rolled out will be dependent on the readiness of the banks in having all ABMs ready for dispensing and accepting the polymer notes, adding that “each bank will issue an advisory to its customers on this.”

As for how long the old notes will be in circulation, the BOJ deputy governor said it is difficult to assess as persons hold notes for posterity purposes in addition to transaction purposes.

“Notably, for banknotes that are no longer legal tender, there are still notes in circulation.” The central bank estimates that 14 per cent of old notes which are no longer accepted as legal tender are still in the hands of individuals, some who keep them to show grandchildren the types of currency notes used in the past.

With the new notes, the central bank has issued a new $2,000 note, as a measure to reduce the demand for the heavily used $1,000 note.

The BOJ notes that the upgrade of Jamaica’s banknotes is aimed at enhancing the security of the banknotes to combat counterfeiting, and also to better satisfy the needs of the visually impaired. Each of the current banknotes has one feature which is dedicated to the visually impaired, that is either large numbering or tactile printing, recognised through touching and feeling.

Haynes last year told the Caribbean Business Report that the central bank spends about $1.4 billion to order bank notes each year, but declined to say how much would be spent to order the new polymer notes.