1. Question: Why is Central Bank introducing a polymer $50 note now?
Central Bank of Trinidad and Tobago is the only authority that can issue and redeem currency. We know the money in your pockets, purses and wallets is important to you and it is our duty to ensure we meet your demand for high quality money you can use confidently and proudly. We review our banknotes every few years and look for ways to improve these notes. In the past, Central Bank has added new security features to its banknotes, incorporated raised bars to assist the visually impaired distinguish one denomination from the other, and introduced new designs/motifs/scenes to reflect Trinidad and Tobago’s diversity.
When considering the case for a polymer $50 banknote, Central Bank was confronted with a few realities:
i. Limited public acceptance of the existing $50 note
The existing $50 has been in circulation for the past two years or so. It was introduced in July 2012 for the country’s 50th Anniversary of Independence, but it was not a commemorative note. The “Independence” $50 banknote has not received widespread public acceptance for various reasons:
Design oversight: The olive green colour of the $50 note is similar in colour to the $5 (green) and $10 (gray) banknotes. This colour therefore makes it very difficult for cash handlers and the public to distinguish the current $50 note from these two other denominations, especially in low light. Senior citizens, in particular, experience difficulty identifying the $50 note.
Insufficient consultation: The current $50 banknote was issued without consultation with key stakeholders, who were unprepared for its introduction. Banks/ cashiers, for example, did not have space for the $50 and did not make much of an attempt to accommodate it by shifting other lower, lesser used, denominations. This negatively affected widespread distribution of the $50.
Commemorative: Some people still believe the $50 banknote to be a “special or rare” note, and collect it, rather than spend it.
ii. Strong economic case for a $50 note
Despite limited public acceptance of the existing “Independence” $50 banknote, we found a strong and compelling economic case to have $50 notes in widespread circulation. Our research showed that the $100 notes and $20 notes are stressed, as both denominations carry out dual functions of store of wealth and means of payment. The absence of an effective mid-denomination currency such as the $50 banknote requires Central Bank to issue substantially more $100 and $20 banknotes than it should. As a result, Trinidad and Tobago is ranked number one among central banks for having the highest banknotes per capita in the world.
iii. Physical representation of Central Bank’s progressive direction as it turns 50
Central Bank is the official issuer of money and this responsibility means we must maintain your confidence in the money you use. Central Bank has strengthened almost every aspect of its operations and responsibilities, as a respected guardian of financial stability and an astute monetary policy authority. After 50 years of existence, Central Bank is seeking to distinguish itself as modern and progressive. Consistent with the Bank’s strengthening of its roles, we feel the “look and feel” of our money should also reflect our progressive approach to our duties. The benefits of the polymer $50 represent our structured and strategic approach as a Central Bank. We are heading into the next 50 years stronger and more vigilant about the ways we serve the people of Trinidad and Tobago.
iv. Innovations in banknote production
Internationally, there have been many innovations in the production of banknotes. Central banks now have a wider choice of design elements, materials and features. Our own research highlighted considerable benefits to using polymer banknotes. After consulting with one of the world’s most experienced and respected currency makers, De La Rue currency from the UK, as well as other central banks, Central Bank determined polymer to be the better choice for Trinidad and Tobago for various reasons tied to the benefits of this particular material over cotton.
v. Staying ahead of counterfeiters
Confidence in banknotes, once lost, is not easily regained. Ensuring you have confidence in your money means we must ensure it is genuine and secure. Central Bank believes it is cheaper and more effective to prevent a counterfeiting problem than to fix it. Polymer and its leading-edge security features mean we can stay many steps ahead of forgers. Counterfeit notes can cost businesses thousands of dollars in losses each year, and the business must absorb this financial strain. Employees who take in counterfeit notes often have the value deducted from their pay, so while some counterfeiters get with it, your daughter, your brother, your mother’s hard earned pay can be cut because they have mistakenly accepted counterfeit notes.
2. Question: What is polymer?
The new $50 note will have a particularly striking impact since it will be on polymer, a biaxial-oriented polypropylene substrate on which the banknotes will be printed. Polymer is a non-fibrous, non-porous material that is tear-resistant and quite durable.
3. Question: When will the first polymer $50 note be available to the public?
In mid-December 2014, the first polymer $50 banknotes will go into circulation “over the counter” at commercial banks and will be available through ATMs on a phased basis across banks from June 2015.
4. Question: I am a business owner, how will the introduction of a polymer $50 affect my business; will I have to make any adjustments?
The introduction and use of our new polymer $50 banknote are not expected to have an adverse or disruptive impact on your business. Commercial banks are part of the implementation process and will distribute the notes over the counter, in the first instance.
There are two considerations for business:
Drawer: Many cash registers come with five slot drawers for money. Central Bank recommends keeping the new $50 in a main slot drawer and removing one of the lesser used denominations, such as the $5 or $10 note. Do keep the smaller value denominations in mind as they will actually make it easier to issue change for your customers with the introduction of a $50 note. There are cash registers with six slot drawers and these can be considered by businesses. If you have questions concerning drawer slots and accommodation of the new polymer $50 notes, please feel free to contact the Bank via e-mail or phone.
Cash counting machines: Polymer notes can be counted in newer model cash machines. Central Bank found most cash counting-machines come from three main companies in Europe and newer models are configured and made to count paper, cotton and polymer money. If you have questions whether your cashcounting machine will be able to count the new $50 polymer notes, please feel free to contact the Bank via e-mail or phone.
5. Question: Will there be a smooth transition to the introduction of polymer $50 banknotes?
Yes. Central Bank is conducting a national education and publicity campaign to educate the business community and the general public about the new polymer $50 note. You will learn what are the features of polymer, including leading-edge security features and how to authenticate the notes, and from December 14th, 2014 we will share the new look polymer $50 note with you. We are working with commercial banks to ensure there is good distribution of the polymer $50 notes over the counter in December 2014 and then through the ATMs on a phased basis by June 2015.
6. Question: How are polymer $50 notes cost effective?
Banknotes must be an efficient means of retail payment. The cost savings from polymer derive from its lower vulnerability to soiling and other forms of wear-and-tear. Polymer $50 notes are expected to last much longer in circulation than conventional cotton notes. Experience in other countries varies but in the Trinidad and Tobago environment, we conservatively estimate the $50 polymer notes would last at least twice as long, on average, as their cotton equivalents. The longer life of the polymer $50 note will mean a substantial reduction in the need to reprint and replace worn notes, and this will fully offset the initial higher production cost. This will result in savings of more than 25 percent of total production costs, over an assumed five-year life cycle of the polymer series, when compared with cotton notes.
Greater public acceptance of polymer $50 notes will also relieve significant stress on the $100 and $20 notes. This means Central Bank will be able to issue substantially lower volumes of $100 and $20 notes, another form of cost savings.
Polymer notes will also have costs and benefits for the broader cash system outside Central Bank of Trinidad and Tobago. Each time a new note series is issued, the equipment that accepts, processes and dispenses banknotes must be adapted by financial institutions, retailers and other cash handling businesses. Our consultations with banks and business groups suggest the cost of adapting their cash-handling equipment to the new $50 note is likely to be minimal and the cash system will benefit in the long run from the change to polymer.
Since polymer $50 banknotes will last longer, the notes in circulation will be of better quality and will allow more efficient processing by financial institutions and other users. In addition, smaller volumes of worn $50 notes will need to be returned to the Central Bank at the end of their useful life. The improved security of the new $50 notes will help keep counterfeiting low and thus maintain confidence among retailers and consumers in our currency.
7. Question: Are there any special ways to use polymer $50 note; can it be used in the same way as regular cotton money?
The polymer $50 will be legal tender and will be distributed to the general population in the same manner as cotton money: through the commercial banks in the first instance and then by the ATMs. Retailers and all business will accept the $50 note.
8. Question: How do I handle this type of money (especially with other cotton notes)?
Polymer notes “behave” in a similar manner to regular cotton money. Like new cotton notes, new polymer notes also tend to stick together but this stops with regular use. However, when the polymer notes are new and sometimes stick together, for counting purposes, you can tap the stack of money on a hard surface to loosen or fan out. For smaller quantities, like a few notes, just snap them in between your fingers. When handling polymer and cotton notes in cash register drawers, for example, or depositing at the commercial banks in big or small sums, it is best to keep polymer notes separated from cotton. In cash registers, place the polymer $50 to the top of your $50 slot drawer and the cotton to the bottom.
9. Question: Will the polymer $50 look totally different from the rest of our money?
The new polymer $50 will look completely different from the cotton $50. It will be gold in colour. This colour was chosen as Central Bank is introducing the note during a special year, our 50th anniversary and the colour of 50th celebrations is gold! We want the polymer $50 note to be distinctive, modern and unique. However, we retained elements of the old. So the new $50 note will be a blend of traditional features you will easily recognize from local money and new elements. The actual size of the $50 note will remain the same as all of our existing notes.
10. Question: Can polymer $50 banknotes be folded?
Yes. Polymer $50 notes are made of a thin and flexible plastic film which can be easily folded, to fit into wallets and purses.
11. Question: Are polymer $50 bank notes slippery?
Polymer $50 notes will feel different from paper and may feel slippery to some people when new. Polymer $50 notes will also have areas of raised print which give them a tactile quality and reduce the slippery feel, and these areas can be used as “grip” for counting. When the $50 polymer banknote is released in mid December 2014, Central Bank will clearly point out these raised print areas so the public can easily identify them.
12. I’ve read that ink doesn’t adhere to polymer notes very well in humid countries and the designs on banknotes tend to smudge, and that this is why they have not generally been adopted in tropical countries. If this is so, why are we making the new $50 from polymer?
In more humid climates with higher temperatures, polymer notes that include a thin plastic coating could actually help by resisting damp and humidity. When polymer notes were first introduced in the 1980s, the technology was new and, in fact, the designs did tend to get smudged. Days after the Bank of Zambia introduced a series of 500 and 1,000 kwacha banknotes, the Bank had to recall them because people realised that the ink was “rubbing off”. However, that was more than 30 years ago and the polymer technology has been developing and improving rapidly. Today’s polymer banknotes are state-of-the art in materials and ink technology and are excellent as a means of ensuring the security and longevity of our currency. The T&T polymer $50 is designed and built to last -- and will not smudge in the humidity of our islands.
13. Question: Will we be using two different $50 notes at the same time, both cotton and polymer?
Yes, this is not uncommon at all in other countries that have introduced polymer notes. Polymer notes were slowly brought into use along with existing paper/cotton notes. In Trinidad and Tobago, we already have different series of notes with different features that are in circulation simultaneously.
14. Question: Will all our money be made on polymer from now on?
Central Bank’s duty is to ensure the public has access to currency they can use freely and confidently. The aim of the polymer $50 is to improve the quality of money we use overall. We will be encouraging the public through our education campaigns to see the benefits of using polymer money for themselves, for the Central Bank, and for the country. If the public is not overwhelmingly satisfied with the new polymer $50 and feedback is mainly negative, Central Bank will be cease plans to have all our banknotes made from polymer and the $50 polymer issue will be the only one. However, we feel confident the public will approve of polymer money, as our focus groups have been strongly in favour of all our money changing to polymer sooner, rather than later.
15. Question: Will the cotton $50 be withdrawn and if yes, by when will that happen and how will that work?
In the case of the existing cotton $50, this will be slowly withdrawn from circulation by Central Bank, when they are brought in to us by commercial banks. We will not recall the cotton $50, and these will still be an accepted form of payment and legal tender indefinitely.
16. Question: Polymer money is being introduced to “stay ahead of counterfeiters”. Does that mean counterfeiting is a problem in Trinidad and Tobago?
Overall, it is difficult to fully assess the degree of counterfeiting in Trinidad and Tobago. Data is lacking due to the simple fact that members of the public typically do not report or turn in counterfeit notes to the police, if they get them. Over the years, Central Bank has seen only a small increase in the number of counterfeit money, but we believe this still warrants extra vigilance and a proactive approach on our part to ensure you maintain confidence in your money. We have seen increasing sophistication in counterfeiting techniques. Our approach is that prevention is cheaper than cure and we want to stay ahead of those looking to forge our banknotes.
17. Question: Are polymer notes counterfeit proof?
No banknote is counterfeit proof. However, polymer is such a specialized material it requires a great deal of money, skill and resources to attempt to reproduce. All central banks that have issued polymer notes have recorded drastic reductions in counterfeit notes. Bank of Canada, for example, went from recording close to 30,000 counterfeit notes prior to the issue of polymer to fewer than 400 counterfeit notes in the first year of issue.
18. Question: Are current cotton notes still safe to use?
Absolutely! Current cotton money carries a range of advanced security features. Counterfeiting is not believed to be a widespread issue locally, and Central Bank has full confidence in the integrity of all notes we issue. All current cotton notes remain legal tender and continue to be accepted forms of payment.
19. Question: Aren’t people more reliant on electronic forms of payment now, like credit and debit cards? if so, why invest in improving actual banknotes?
While electronic forms of payment have become popular in the last few decades, cold hard cash remains a major way Trinidadians and Tobagonians pay for goods and services. The total value of currency in active circulation continues to grow in line with the overall growth of the economy. Old-fashioned money will probably not be discontinued in our lifetime.
20. Question: Which other countries use polymer banknotes?
Australia was the first country to introduce a full set of circulating polymer banknotes. Jamaica issued a special hybrid polymer about five years ago. Canada, Brazil, Chile, Brunei, Hong Kong, Indonesia, Kuwait, Malaysia, Mexico, New Zealand, People’s Republic of China, Singapore and over 10 other countries are using polymer banknotes. In 2016, the UK will go polymer. The Reserve Bank of India announced this year it is also looking at introducing polymer notes. The US Federal Reserve, the European Central Bank and the Bank of Japan maintain their preference for paper/cotton notes.
21. Question: What process did the Bank use to make this move to polymer?
Like all central banks, the Central Bank of Trinidad and Tobago assesses and reviews its banknotes periodically. Having considered the variety of reasons for the low acceptance of the existing cotton $50 note, we commissioned a study, which clearly showed a strong and compelling case for a $50 note in our currency structure. We then engaged in standard banknote design stages with our currency maker. We were involved in the process every step of the way but did seek external advice on several matters before the final design was approved for production. Several groups were consulted at different stages of the process, from design of the $50 note and placement of national symbols, to general responses on suggested “look and feel” of a redesigned $50 note, to overall implementation of the $50 note in banks.
22. Question: The new designs are being called representative of our cultural diversity. how did the Bank go about selecting what images would be used on the notes?
Central Bank convened a committee of experts in various fields including history, culture, art and religion to propose and make recommendations for the new bank note designs.
23. Question: Who makes our new notes?
For the last 50 years, De La Rue of the United Kingdom has made our currency. They will also produce our polymer $50 note.
24. Question: Do polymer notes melt at high temperatures?
No banknote substrate (material) is infallible. Polymer banknotes begin to shrink and melt at very high temperatures, above 120° C.
25. Question: Do polymer banknotes carry germs?
Banknotes, like any other surface large numbers of people come into contact with, can carry bacteria. There are few conclusive studies, at this time, looking at the bacterial count/habitat of cotton and polymer notes. However, due to the non-porous, non-fibrous nature and coating of polymer it is impermeable to water, sweat, dust and dirt. Eu, Chiew and Straus (2008.6.1, pg. 6) posit, *“…scientific evaluation has shown that there is significantly less bacteriological growth on polymer banknotes, and that any bacteria which gets onto banknotes quickly die because of the lack of nutrients on the non-porous, non-fibrous material.”
*Conclusions: Microbial Populations on Banknotes (1995 CSIRO, Australia) by Duncan A. Ph.D., Mc Lean K. Ph.D and Kelly J.”
26. Question: How will polymer notes be destroyed?
Central Bank of Trinidad and Tobago is currently evaluating options for recycling old polymer notes, to give them a second life. There are several options. In Australia, for instance, polymer banknotes are recycled into other useful plastic items, such as plant pots.
27. Question: What is the environmental impact of polymer notes?
The Bank of England commissioned an independent study from PE International to assess the environmental impact of the Bank’s current paper banknotes and polymer banknotes. The environmental study relates specifically to the introduction of polymer Bank of England notes in the UK e.g. the denominations used, the number of notes in circulation, how long they currently last, and how notes are typically accessed (primarily via ATMs).
Bank of Canada states on its website;
“The Bank of Canada commissioned a life-cycle assessment by experts in this field to evaluate changing Canada’s bank note substrate from a cotton-based paper to a polymer material, and to compare the environmental impacts of producing and distributing both types of bank notes.
The study examined everything from the impact of growing cotton for bank note paper and of producing the raw material for polymer, through to the destruction and disposal of worn bank notes. The study found that polymer bank notes show benefits over paper notes for all the main phases of the life cycle, including manufacturing and distribution. Since polymer notes will last at least 2.5 times longer than paper notes, fewer polymer notes will have to be manufactured and distributed over the life of the series. Furthermore, polymer notes weigh less than paper notes.
The study examined nine internationally recognized categories for life-cycle impact assessment, including global warming potential and primary energy demands. In all categories, polymer shows improvements ranging from a 29 per cent to a 60 per cent reduction in environmental impact. It shows, for example:
● a 32 per cent reduction in global warming potential
● a 30 per cent reduction in primary energy demand
Recycling
At the time of the study, the Bank of Canada had not chosen a specific end-of-life scenario for polymer bank notes. So, for the sake of modeling, the end-of-life treatment currently in use for our cotton-based paper notes (landfill) was assumed. The Bank has since determined that it will recycle polymer notes once they become worn, which is expected to add to the environmental benefits.”