BOJ in talks to extend old banknote exchange
THE Bank of Jamaica (BOJ) says it is negotiating with commercial banks to facilitate the exchange of older cotton-based banknotes even after they cease to be legal tender on July 1, 2025.
In April, the central bank announced that the older notes would no longer be accepted as legal currency after the deadline but confirmed it would continue exchanging them for newer polymer versions. Now, it is urging commercial banks to adopt the same measure to accommodate those who miss the cut-off.
“We are talking to the commercial banks to see whether they would allow for that swap out to continue even after July 1,” Governor Richard Byles explained during the BOJ’s recent monetary policy press briefing.
Byles did not specify how long banks might continue the service. He, however, reiterated the public should aim to swap notes by the original deadline.
“We want everybody in the public to swap out their old notes for new notes by the first of July and you can do that in all the commercial banks. After that, you can come to the Bank of Jamaica and swap them out,” he said. “Bring them in, change them out. There is no cost to you whatsoever.”
The governor also addressed concerns about another financial matter affecting Jamaicans — potential new US taxes on remittances, a critical source of income for many families.
The US House of Representatives passed that country’s budget on Thursday, including a 3.5 per cent tax on outbound remittances from non-US citizens, set to take effect December 31. The measure, initially proposed at a higher 5 per cent rate, was lowered following negotiations in Congress.
Speaking a day before the vote, Byles expressed hope that the tax would not be implemented but acknowledged that remittance companies could help soften the impact.
“The point is if it does happen, there are agents along the way that can… give a little ease so they take a little less margin and allow the industry to continue flourishing. Because in the long run, it is to the benefit of not just the beneficiaries, but the whole banking/financial industry that that business continues.”
Remittance inflows into Jamaica remain strong, though growth has slowed in recent months. In January and February, inflows reached US$514 million, with about 70 per cent coming from the US.
