22 September 2009
The Treasury Minister is asking the States to increase the maximum amount of Jersey notes which can be issued to £100 million.
The present limit was set at £75 million in 1999. The amount in circulation is currently about £70 million and this remains stable throughout the year but peaks at Christmas, as people use more cash, before decreasing again in January. The Treasury wants to increase the limit to meet this seasonal demand for cash.
Minister for Treasury and Resources, Senator Philip Ozouf, said: “The demand for cash goes up each year and we need to make sure we can issue more notes if necessary.
“This is an administrative decision. It’s not quantitative easing like we’ve seen recently in the UK. I need to be clear that the Treasury is not ‘printing more money’, the number of Jersey notes in circulation is governed entirely by the demands of retail banks, which is driven in turn by the needs of their customers for cash.”
Unlike the UK, Jersey has a fully backed currency, which means that every pound in circulation is matched with a one pound investment.
The proposition has been lodged for debate on 3 November 2009.
gov.je