$5.4b in polymers for demonetisation

THE Central Bank disbursed to private banks some $5.4 billion in new polymer notes to be traded in for old $100 banknotes in the recent demonetisation action, the Prime Minister told the House of Representatives on Wednesday. He was replying to a query by Caroni Central MP Dr Bhoendradatt Tewarie during Prime Minister’s Questions.

The Opposition MP asked about the sum of the $100 notes actually brought in by citizens for exchange, but Dr Rowley did not have those details. He advised Tewarie to see the Central Bank’s upcoming quarterly report or to file a fresh question to Finance Minister Colm Imbert who in turn would consult the Central Bank.

Tewarie asked if $5.4 billion was the entire amount of $100 polymer notes in the exchange process.

Rowley said the Central Bank had ordered more than that sum. “The Central Bank, in carrying out this exercise, would have been cognisant of the amount of money that is supposed to be in circulation through $100 bills.

“It would have been logical as it was factual for the Central Bank to have ordered enough money to cover the monies that were out in circulation, and the member knows where he can find the figure of what was in circulation. The answer is that the Central Bank did order as much money as was required to cover what was in circulation.

“So it would have ordered far more than $5.4 billion.”