Bad tickets? The Bank of Guatemala prepares million-dollar purchase of paper currency
The central bank is replenishing inventories of banknotes and coins as it prepares tenders for paper-printing houses.
The Q100 ticket is the most widely used in the Guatemalan economy with a 70% stake. (Photo Free Press: Hemerotheque PL)
Guatemala will renew the bad banknotes and coins to replenish its inventories, with the aim of putting them into circulation soon in the economy.
It was announced that a contract is being prepared to acquire about Q22.10 million in 2024.
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The acquisition of the new batch of banknotes and coins was confirmed by the authorities of the Bank of Guatemala (Banguat), who announced that it is in the preparation phase of the tender to invite international manufacturing houses to print banknotes and coins.
William Cano, financial manager of the central bank, said that this is an annual contract to acquire banknotes and coins, in which this type of acquisition is made, and that the purchase process for a total of Q22 billion 10 million is in progress.
98.6% of the programmed acquisition, which amounts to Q21.7 billion, is for the purchase of banknotes of different denominations, and Q310 million, which represent 1.4%, are for the purchase of currency.
The official said that the cost of the acquisition is not yet available, since the process is currently underway, and the tender will be carried out later, so the information of the printing houses is not available.
Master the Q100 ticket
According to central banking analyses, seven out of ten tickets circulating in the economy are Q100 tickets, and the purchase planned for this year amounts to Q20 billion. Tickets of Q20, Q10 and Q5, considered to be of low denomination and circulate at a faster rate in the economy, will also be purchased.
These banknotes, being of low denomination, tend to suffer greater wear and tear over time, and a replacement process is therefore necessary, given the high frequency with which they are used in retail transactions.
These acquisitions are precisely to meet the demand for monetary issuance and the process of replacing those that deteriorate, said the financial manager.
Currently, there is a monetary mass of approximately Q92 billion in circulation in the economy, including an additional injection of Q2.8 billion due to the demand for cash for Easter.
Monetary issuance:
- In the Guatemalan economy, the Q100 ticket is the most demanded, with a 70% stake.
- It is followed by the low denominations, which are the Q20, Q10 and Q5 banknotes.
- Seasonably, there is a greater demand for paper currency during Easter due to the massive displacement of people, the payment of the 14th bonus to workers in the public and private sectors, and during the Christmas and New Year holidays.
This article has been translated from the original which first appeared in Prensa Libre