Weak Jamaican currency paves the way for new $2,000 note

A $2,000 note will be the newest addition to Jamaica’s suite of banknotes and will start being used later this year. The note will feature late former prime ministers, the Most Hon Edward Seaga and the Most Hon. Michael Manley. Minister of Finance, Dr Nigel Clarke made the announcement in last Tuesday’s 2022/23 Budget Debate in the House of Representatives. Minister Clarke said studies have shown that there is a need for another note between the $1,000 and $5,000 note for easier transactions.

“With the introduction of the $2,000 note alongside the $1,000 and $5,000 notes, persons will require fewer notes to settle transactions,” he said. The cost of printing banknotes will also be reduced because instead of printing two $1000 notes, one $2000 note can be printed. 

Former financial analyst and current accountant, Omar Simpson, said the introduction of the new $2,000 note is an indication that the Jamaican currency is weak against other currencies. He clarified that the introduction of the new note will not make the Jamaican currency weaker but is only an indication of how weak the Jamaican currency is. Like Minister Clarke, Simpson said the $2,000 note will make it possible for fewer notes to be used in transactions. 

“So, for example, if you had purchased a TV 10 years ago, you’d probably paid $20,000. The most effective way to purchase the TV would be [to use] a $20, 000 bill. Now, fast forward to now where the average price for a tv is $50, 000. To be more effective and to print less money, they created a $5,000 note so you would only need 10 $5,000 notes instead of 50 $1, 000 notes [to purchase the TV],” he said. He used this example to show that the same can be said about the new $2, 000 note.

Minster Clarke also told the House that the current bank notes will be upgraded to new designs and will also start being used this year. The upgraded bank notes will have National Heroes Paul Bogle and George William Gordon on the $50 note, Marcus Garvey on the $100 note, Sam Sharpe and Nanny of the Maroons on the $500 note, former prime ministers, Sir Alexander Bustamante and Norman Manley on the $1,000 note and former prime ministers, Sir Donald Sangster and Hugh Shearer on the $5,000 note.

The new notes will be made with more durable materials which will make them last 50 per cent longer than the current bank notes. This will lower how frequently all banknotes will have to be printed and the costs associated with that process. 

Minister Clarke told the House that the new notes will be more easily identifiable for the visually impaired, more easily distinguishable for everyone because of the differences in colour and other distinctions, and will reduce the risk of counterfeiting.