Private sector welcomes advisory on $5,000 note

5,000Georgetown:  Private sector bodies, the PSC and the GCCI, have both welcomed the public advisory on the use of the new $5,000 note, which went into circulation on Monday.

Chairman of the Private Sector Commission (PSC), Ronald Webster, maintains that while legal “enforcement” of regulations for the note may not be possible, an advisory can assist in avoiding challenges for the small entrepreneur.

He noted that apart from the advisory, consumers should exhibit “understanding” in the use of the new note, not using it for small transactions.

 “I don’t think people will use the $5,000 note for a small transaction….it is a matter of commonsense, but I do not object to an advisory,” he said.

Webster noted that the Commission is not concerned about inflation, but the body is concerned about possible forgery.

“This tends to happen with the higher denominations,” he said.

There are several distinct security features on the new note, including a watermark, the macaw and value of the note ($5,000); a spark, 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; a see-through, the value of the note ($5,000) appears when the note is held up to the light; a latent image, at a certain angle the value 5000 can be seen; 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.

Meanwhile, President of the Georgetown Chamber of Commerce and Industry (GCCI), Clinton Urling told the Guyana Chronicle that there should be a minimum limit for which the new bill should be used.

“As it stands, business people are at the mercy of consumers who present the $5,000 note for small transactions. What we will end up with will be a change demand and we may end up printing more $1,000 bills,” he said.

The GCCI President maintained that the Chamber supports the introduction of the new note, which will impact the transactions positively, primarily as it relates to a reduction in the handling costs of particularly large transactions, given that one five-thousand dollar note will replace five one-thousand dollar notes.

However, he said without an advisory on a minimum limit for the $5,000 note’s use, the “change demand” will increase and the initial purpose of introducing the new note will be defeated.

In Guyana, the $1,000 note accounts for approximately 59 per cent of the quantity of currency notes in circulation and around 94 per cent of the total value of money in circulation.

Urling added that if the purpose for the introduction of the new note is defeated and the additional notes are printed to keep up with the “change demand” it can result in an increase of inflation concerns for Guyana.

Finance Minister, Dr. Ashni Singh, at the launch of the new note, made it clear that the value of the Guyana dollar remains the same, unaffected by the new note’s introduction.