Polymer Switch got you in a panic?
By: By Roxanne Forde, Principal Consultant | July 14th, 2021 | Related To: Regional Compliance Consultants (RCC) Ltd
Simmer down the Stresses of a Currency swap with these helpful guidelines.
Earlier in June, tempers flared, and keyboards started smoking as the public responded in uproar to the Central Bank of Trinidad and Tobago’s (CBTT) announcement of its decision to make the switch away from cotton notes to polymer notes.
Having read further and explored the announcement in detail, here I share a few helpful tips that will prevent you from rushing out the door to attempt converting your cotton notes to polymer.
1. Pause for a minute:
The CBTT will continue to Indefinitely redeem cotton notes, in an effort to avoid rushing and crowds. With the current pandemic and State of Emergency ongoing – there is full intent of the CBTT to lengthen the exchange period for as long as is needed in order to avoid the unnecessary congregating of persons and crowds to process.
While it’s best to not wait until the last minute, there is absolutely no need to sprint out the door just yet as the cotton currency will remain legal tender for a time to come.
2. Redemption is to continue by Commercial Banks
In line with the Minister’s announcement, all Commercial banks will also continue to redeem these notes for the rest of 2021 and will provide ample notice, as well as exchange guidelines.
3. Be Currency Careful
It’s a good time to do an assessment of your existing cashflow & balances. Now is NOT a good time to resort to hoarding notes at home, or in your business. Be aware of petty cash envelopes, emergency cash funds located at home, or in the business to avoid stumbling across obsolete notes after the date of exchange has passed. It would be a good time, to approach your bank to make use of overnight deposit facilities.
4. Develop Healthy Cashflow Systems
Efficient payment plans and policies, ensure that your business’ cashflow is smooth and healthy. This prevents you from inheriting obsolete bills as the close off date draws near. Invest the time now, to ensure that the flow of cash within your business is transparent. The transition will continue over the rest of 2021, so there is no need to put yourself or your loved ones at any risk. If you need guidance on setting up healthy business practices, regulatory systems and remaining compliant, feel free to reach out to Regional Compliance Consultants Ltd – we are here to assist with your regulatory compliance and risk minimization.