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BOJ's demonetization regime effective this week

The Bank of  Jamaica's (BOJ) demonetization regime goes into effect this week.
 
The Central  Bank will on Thursday demonetize the one, 10, and 25 cent coins.
 
This means that the Bank will cease making these denominations and after a certain time the coins will no longer be legal tender.
 
However, even after the coins are no longer legal tender for transactions, the Bank of  Jamaica will indefinitely continue to redeem them for face value.
 
Chief  for the Banking and Market Operations Division at the Bank of  Jamaica, Natalie Haynes, says the coins are being demonitized after a decrease in demand.
 
"When we looked at the data for the period for 2005 and 2016, when we did our analysis, the demand for those coins declined significantly.  The 25 cent declined from 11.1 per cent to 1.1 per cent in 2016," she said.
 
Meanwhile, the Bank of  Jamaica has outlined the changes that will be implemented for transactions involving coins.
 
For cash transactions the bill be rounded up or down to the nearest dollar depending on the amount.
 
"So if you go to the supermarket and your bill is $40.49 cents  - if you're using credit card or a cheque  - then you pay $40.49 but if you are paying cash that 49 cents will be rounded down. But if the transaction is between 50-99 cents, you round up to the next dollar," Haynes said. 
 
 


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