Central Bank Issues New
Notes To Meet Demands of
the Season
In addition to emitting
millions of new coins,
the Banco Central de
Costa Rica (BCCR) -
Central Bank - is also
forced to put into
circulation new paper
currency during the
coming month as the
Aguinaldo, the Christmas
Bonus, hits the streets
beginning on December 1.
All public and private
salaried employees are
eligible to receive the
Aguinaldo that, for
simplicity, equals to
one month's pay or a
portion thereof for
employees working less
than a full year,
between December 1, 2006
and November 30, 2007.
The central government
announced that it will
pay its Aguinaldo on
December 5. Employers,
both state institutions
and private business,
have until December 20
to pay the Aguinaldo or
face sanctions.
The BCCR say it will put
into circulation 35
million new paper notes
in a plan that runs
until December 26.
The quantity of notes
translates into ˘212
billion colones (us$425
million dollars) that is
required by the
financial institutions
to meet the needs of the
country during the
coming month.
Ricardo Rodríguez, BCCR
treasurer, said that the
emission is also to make
up for the large number
of notes now in
circulation that in bad
shape, which will be
pulled from circulation
once the banks receive
them and exchange them
for new ones.
Costa Rica issues notes
in denominations of
˘1.000, ˘2.000, ˘5.000
and ˘10.000. The BCCR
plans to issues ˘20.000
and ˘50.000 notes in the
coming years, though no
exact date of emission
has been announced.
Rodríguez added that
˘212 billion colones are
expected to be back in
the Central Bank's vault
by the end of January
2008, coming from
retailers deposit and
savings of Costa Ricans.
The Central Bank's
treasurer is asking
Costa Ricans not to mark
up or damage the new
notes as the replacement
costs the bank money.
The current emission is
costing the Central Bank
us$3.5 million dollars. |
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