It was inevitable the Central Bank would move to issue new $1, $5, $10 and $20 notes. Given the prior transition to $100 polymer notes, a degree of standardisation across the board was always on the agenda.
The new bills bring added costs and tribulations, but there are some notable improvements, such as additional anti-counterfeit elements and new features designed to make them more user-friendly for the blind.
However, issues have arisen with the timeline of implementation and coordination among state agencies and private entities.
One bank said its ATMs would stop conducting transactions involving old notes by December 1. The Supermarket Association has advised its members to stop accepting old bills by next Wednesday. State-owned National Petroleum Marketing Co Ltd has given its customers a deadline of next Friday.
In contrast, another bank is allowing customers to turn over cotton notes until the end of January.
Unlike what obtained with regard to the $100 bill, when the Central Bank gave a few weeks' notice of its intentions, there has been a relatively longer transition period. The new bills began to circulate, authorities say, since the end of 2020.
Additionally, the Central Bank itself will exchange old bills for about one month after the expiry of the December 31 deadline.
For its part, the State sees demonitisation of old cotton bills as a useful tool in getting people to account for possibly ill-gotten gains. The case of a pastor who was charged in July for possession of $28 million in $100 cotton bills underlined how the process can bring hidden matters to light.
However, stakeholders have noted while these measures might seek to target criminals, law-abiding citizens sometimes end of being treated unfairly.
TT Chamber of Industry and Commerce CEO Gabriel Faria has noted members hope the deadline will be pushed to the end of January since November and December are traditionally busy months.
Though a lot of notice was given of the change, smaller businesses that rely heavily on cash may still be disproportionately affected, said president of the Greater San Fernando Area Chamber of Commerce Kiran Singh. And it is well known that almost one sixth of the population is 'unbanked', doing all transactions by cash.
The Central Bank cannot please everyone, but it should nonetheless be sensitive to the implications of its chosen timeline. The 'last minute' culture of citizens is just one aspect of this, another is the real implication of a deadline at the busiest time of the year.
Consistent messaging and policies are also needed when introducing changes like this.
Meanwhile, there is some irony in the timing of this demonitisation exercise. If part of the rationale behind it is to get people to change how they relate to and think about their cash, it is somewhat ironic that we are updating cash bills. We should be devoting more attention to getting people to go cashless, not exchanging old for old.
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