Governor of the Bank of Guyana Lawrence Williams has said that the bank will be seeking to ensure that the new $5,000 currency note shortly to be introduced lessens consumer dependency on the $1,000 note thereby reducing the risk of inflation in the economy.
Government’s announc-ed intention to introduce the higher denomination currency note has led to concerns in some quarters that the move might lead to higher inflation. But Williams says that “introducing higher denomination will only lead to higher inflation if it increases money in circulation such that there is an excess supply of money.” He added, “if the bank ensures that the new denomination replaces some of the dependency on the $1,000 notes such that money supply does not increase beyond normal trends, then there is no reason to expect that the introduction of higher denomination will lead to higher inflation.”
In a paper delivered at a July 25 banking and investment seminar hosted by the Georgetown Chamber of Commerce and Industry, Williams said that enhancing the efficiency of the
