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Increase level of Jersey Currency Notes in Circulation.

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A decision made (17/09/2007) regarding: Increase level of Jersey Currency Notes in Circulation.

Decision Reference: MD-TR-2007-0094

Decision Summary Title:

Increase the level of Jersey Currency Notes in Circulation

Date of Decision Summary:

11th September 2007

Decision Summary Author:

Di Riddett - Head of Financial Processing

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Increase the level of Jersey Currency Notes in Circulation

Date of Written Report:

11th September 2007

Written Report Author:

Di Riddett - Head of Financial Processing

Written Report :

Public or Exempt?

Public


Subject:

Increase the limit of Jersey Currency Notes in Circulation

Decision(s):

The Minister for Treasury & Resources approved an increase in the Jersey Currency Notes Circulation Limit to £100 million, the administration of which would be carried out by the Head of Financial Processing.

Reason(s) for Decision:

Over the past 5 years there has been an average increase of £2.7 million per annum to the levels of Jersey Currency Notes in Circulation and if trends continue the Treasury & Resources Department will exceed the agreed limit of £75 million. (please see attached document)

Resource Implications:

There are no changes to resource requirements.


Action required:

Head of Financial Processing to make the necessary arrangements to administer the Jersey Currency Notes in circulation following this decision.
 

Signature:

Position: Senator Terry Le Sueur, Treasury and Resources Minister

Date Signed: 17th September 2007

Date of Decision: 17th September 2007

Increase level of Jersey Currency Notes in Circulation.

TREASURY & RESOURCES DEPARTMENT

INCREASE OF JERSEY CURRENCY NOTE

CIRCULATION LIMIT

INTRODUCTION

The authority to issue currency notes was conferred on the Finance and Economics Committee under Article 1 of the Currency Notes (Jersey) Law, 1959 as amended.

Article 1 - Power to Issue Currency Notes

  1. The Finance and Economics Committee shall have power to issue currency notes of such denomination, not exceeding £50, as the Committee may determine, and place such notes into circulation in the Island.

 

Provided that:

  1. no currency notes shall be issued without the previously obtained authority of the States ; and
  2. the amount of currency issue shall not, at any time, exceed fifty million pounds

 

  1. The States may, by Regulations, vary the maximum denomination of currency notes and the amount of the currency note issue in circulation at any one time.

 

CURRENT SITUATION

Over the last five years there has been a continual demand for Jersey Currency Notes, resulting in the current circulation level reaching £61 million, with a Christmas peak of just less than £70 million in December 2006. The current circulation limit is £75 million, approved by the States on the 9th August 1999. A review was carried out to anticipate future demands and it became evident that if trends continued, we will see an estimated increase of £2.7 million per annum. In preparation for this continual growth it is suggested that the circulation limit be increased from £75 million to £100 million.

RECOMMENDATION

It is recommended that the Treasury & Resources Ministry seek the approval of the States to increase, by Regulation, the maximum value of currency notes in issue to £100 million.

TREASURY & RESOURCES

SHARED SERVICES

HEAD OF FINANCIAL PROCESSING 11th September 2007

 

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