You Asked, We Answered. What You Wanted to Know About Barbados’ New Polymer Banknotes, Part 2

In preparation for the introduction of Barbados’ new polymer banknotes, the Central Bank of Barbados conducted a survey in which we asked what you wanted to know about the new notes. Now that you’ve told us, we’re answering the top 10 most asked questions. We already addressed five of those questions in a previous article, now here are our responses to the second five.

Will the denominations be the same?

It’s not surprising that having heard that both the design of our notes and the material they are made from would change, there would be questions about what else would change. Several of the people who responded to our survey wanted to know if the Bank would be adding a new denomination. Others were nostalgic and asked if they would see the return of the $1 note, which was last issued in 1988. The answer in both instances is no. The new notes will be in the same six denominations – $2, $5, $10, $20, $50 and $100 – as the current notes. They will also be the same size, the same colour, and feature the same historic Barbadians.

Will the new notes work in ATMs?

The functionality of the new notes was also on people’s minds, with a number of them asking if the new notes will work in ATMs and vending machines.

Even before we announced the new series publicly, the Bank has been working with commercial banks and credit unions as well as the owners of vending machines to ensure that the transition from paper to polymer will be smooth. We’ve also provided them with the test notes they need to recalibrate their machines.

While some companies have said that the process has been completed, others have reported delays. However, most continue to work to finalise their recalibration either before the new notes go into circulation or as soon as possible afterwards.

Why spend money on new banknotes? Couldn’t the money be used for something else?

For some, their concern was about cost. Several people asked about the Bank’s decision to spend money on banknotes, were interested in how the price compared to previous series, or wanted to know if this was the best use of taxpayer money.

There are three parts to this answer.

Most people don’t realise it, but the Central Bank of Barbados is constantly replacing old, worn, or defaced banknotes with new ones, so while the design on the banknotes you currently use has been the same since 2013, you’re not using the same notes that were in circulation back then.

We actually buy new banknotes (and coins) on a regular basis. This is why, for example, you’ll find Governor Haynes’ signature on many of the current 2013 series notes even though he wasn’t the Governor when they were introduced. So, even if we weren’t changing the design, we’d still have to buy banknotes.

In terms of a cost comparison between the current banknotes and the new ones, the new polymer banknotes are indeed more expensive. However, because of how durable the substrate is – polymer banknotes typically last two and a half times as long as paper banknotes – we will have to order fewer replacement notes, and this will result in cost savings in the medium-term.

Finally, the Central Bank and its operations are not financed by the government, so the new banknotes (or previous series for that matter) are not being paid for with taxpayer money.

Will I still be able to spend the older notes?

The most-asked question in the survey was actually about paper notes and not polymer ones. People wondered if they will still be able to use paper money after the new notes are issued.

Yes. After the new polymer series goes into circulation, you can continue to use your older notes, and retailers should continue to accept them. Over time, as those paper banknotes get worn, they’ll be removed from circulation and destroyed, so you’ll see fewer of them floating around. Even then, you’ll still be able to spend the ones you do have.

That’s good news for those of you who like to keep some money tucked away and sometimes forget where you put it.

When will the new notes come out?

Finally, some people just wanted to know when they would be able to get their hands on the new notes. The answer: December 5, 2022. That’s when we’ll issue the money to commercial banks, and then you’ll get it from them.

So mark your calendars.

If you didn’t see the answer to your question about Barbados’ new banknotes in this article, read part one to see if we addressed it there.

Still not seeing it? Then check out our full list of responses to frequently asked questions about the new banknotes.

Still not seeing it after reading the both articles and the FAQs? Send us an email at newnotes@centralbank.org.bb