Polymer material considered for low-denomination bank notes
 

www.abc.com.py

11.09.11

Translation

Polymer bank notes last at least two years. The G. 2000 was the first bill introduced on polymer in Paraguay.

The Central Bank is studying the possibility to print low-denomination bank notes, such as G. 5,000 and G. 10,000, on polymer instead of on paper. Paper bank notes have a lifespan of only six months, and the conversion would reduce the costs for the Central Bank.

The polymer note, a new technology, has greater durability. It is estimated that its life is two years at least, and although it is more expensive than a paper bank note, the end costs for the Central Bank will be lower.

The first polymer bank note circulating in the country is G. 2,000. These plastic notes were introduced to the market in December 2009. On that occasion, a total of 28.5 million notes were printed. The note has been accepted as a mid-denomination, given the gap that existed earlier between the notes of G. 1,000 and the notes of G. 5,000.

The cost of polymer notes was U.S. $ 3,333,735 for 28.5 million pieces (a cost of G. 540 at current rates). Meanwhile, 20 million paper notes of G. 5000 cost the Bank U.S. $ 980,000, with a unit cost of G. 196.

Considering that the notes of G. 5,000 and G. 10,000 have an average life of six months, two years would require three bank note orders, which ultimately represents a higher cost and workload for the monetary institution.

In the countries of the region, polymer has been widely accepted among the lowest denomination notes for its high strength and security.

Issuers that use polymer banknotes have experienced large reductions in the number of counterfeits.

On the other hand, the Central Bank reported that just over 6 million notes of the new G. 5,000 notes of the series "F" were withdrawn, while G. 10,000 notes are still circulating.