Guatemala will renew banknotes that are in poor condition and coins to replenish its inventories, with the aim of soon putting them into circulation in the economy.
It was announced that a contract is being prepared to acquire some Q22,10 million in 2024.
The acquisition of the new batch of banknotes and coins was confirmed by the authorities of the Bank of Guatemala (Banguat), who announced that they are in the preparation phase of the tender to invite international manufacturing companies that print banknotes and coins.
William Cano, financial manager of the central bank, assured that it is an annual contract to acquire bills and coins, in which this type of acquisitions are made, and that the purchase process for a total of Q22 thousand 10 million is ongoing. .
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 represents 1.4%, is for the purchase of currency.
The official assured that the cost of the acquisition is not yet available, “since the process is currently underway,” and the bidding will be carried out later, so information on the printing houses is not available.
Master the Q100 bill
According to central banking analyses, seven out of every ten bills circulating in the economy are Q100 bills, and the purchase planned for this year amounts to Q20 billion. They will also be acquiring Q20, Q10 and Q5 bills, considered low denominations and which circulate at a higher speed in the economy.
It is considered that these banknotes, being of low denomination, tend to suffer greater wear and tear over time, making a replacement process 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 replacement process for those that deteriorate,” stated 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 due to Holy Week.
Monetary Issue:
- In the Guatemalan economy, the Q100 bill is the most demanded, with a share of 70%.
- They are followed by the low denominations, which are the Q20, Q10 and Q5 bills.
- Seasonally, there is a greater demand for paper money during Easter due to the massive displacement of people, the payment of bonus 14 to public and private sector workers, and during the December festivities for Christmas and the New Year.
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