Introduction of composite money is economically justified, Armenian central bank official says

Introduction of composite money is economically justified, Armenian central bank official says

YEREVAN, July 25. /ARKA/. The introduction of the so-called composite money will cost the government more than production of ordinary paper banknotes, however, the first option is economically justified, the secretary general of the Central Bank of Armenia David Nahapetyan told ARKA agency.

He declined to reveal specific figures, citing the lack of an agreement with the printing house. Earlier, Armenia’s Central Bank had announced a tender for printing composite banknotes and is waiting for applications.

Nahapetyan said the decision to switch to composite money in 2018 is in line with the spirit of the time conditioned by a number of factors, such as  high degree of security (paper money is much easier to forge than composite ones) and a longer life. In addition, they are difficult to tear and they do not get dirty. In his words, production of composite money is by 30-40% more expensive, but their lifetime is 2-4 times longer than that of paper banknotes.  

“From the economic point of view, by putting into circulation such bills we actually save money," he said, adding that the Central Bank's task is to ensure the safe circulation of banknotes, and composite banknotes come to solve this problem. He said the printing of new banknotes will not be financed by the government budget.

The introduction of new banknotes in 2018 is timed with the 25th anniversary of the national currency – the dram. The current banknotes will be gradually replaced by new generation banknotes. In addition, new images will appear on the bills, and a banknote with a nominal value of 2,000 drams will be introduced, while 100,000 drams banknotes will not be issued at all due to low demand. -0-

15:38 25.07.2017





 

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