He said the country should have implemented this demonetization outside of the Christmas period, as it could restrict the potential sales that small businesses could receive in this period.Īrjoon said flea markets that operated during Christmas don’t accept electronic payment and primarily used cash. ![]() He said many of these businesses have been sustaining losses for years.Īrjoon said while the country really cannot afford to experience any further downturn in economic activities, the demonetisation will cause even more short-term recessionary implications for the country. He said less cash in circulation meant that less money was being spent and less cash is available for cash-based businesses in the very short term.Īrjoon said sales revenue will therefore fall further and there will be a slowdown in business activity, especially micro and small business such as small retailers, farmers, manufacturers and construction firms, which don’t have Linx/credit card machines. He said some people could miss the cancellation date, this process will temporarily remove monies out of active circulation and delay spending.Īrjoon said the money supply could also fall when funds brought to the banks are red-flagged and were not allowed to be redeemed, given that monies illegitimately held were still part of the money supply. He said even though many Trinidadians used credit/debit cards, it was are still a cash-based society.Īrjoon said If the window to exchange the notes was small, like the two-week minimum stipulated by the new legislation, there will be long possibly chaotic lines at the bank to exchange the cotton notes for the polymer notes. ![]() National Security Minister Stuart Young said the measure was taken to fight money laundering, the financing of drugs and illegal firearms, tax evasion, the black money economy, counterfeiting and other illegal activities.Īs the 14 day countdown for the implementation of the new polymer $100 bill ticks down, Guardian Media contacted economists Dr Vaalmikki Arjoon and Mary King to weigh in on the issue.ĭr Vaalmikki Arjoon said the demonetisation was not without some potentially serious consequences and there ought to be measures in place to limit them. ![]() Minister of Finance Colm Imbert said in the Miscellaneous Provisions (Proceeds of Crime and Central Bank) Bill 2019, from the date of notice by the Central Bank to the appointed date, citizens can use the old paper notes and the new note, but at the end of the period only the polymer notes will be accepted. Legislation to replace the $100 bank note with a new polymer bill was passed in the House of Representatives just after 10 pm on Friday.
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