richard byles : opening remarks - press conference on new banknotes opening remarks by mr richard byles, governor of the bank of jamaica, at the press conference on new banknotes, kingston, 15 december 2022. * * * bank of jamaica is pleased to announce the launch of jamaica's new series of banknotes. jamaica's banknotes are a true representation of our country's rich history, culture, major economic activities, values and the best traditions and aspirations of its people. they have also heralded essential social hallmarks such as our diversity and inclusiveness, as is eloquently expressed in our motto : " out of many, one people ", and suitably displayed in the iconic photograph of the school children of central branch primary school. in this new series, we have sought to modernize and upgrade the banknotes ensuring that while they are representative, relevant and forward - looking, every jamaican can and will be proud of the final products. this new series of banknotes is comprised of six denominations including the introduction of a $ 2, 000 note. the upgrade of jamaica's banknotes is aimed at achieving several objectives. 1. enhancing the security features of the banknotes to prevent counterfeiting counterfeiters are now using more sophisticated technology to threaten banknote security worldwide. in order to remain ahead of counterfeiters and more effectively mitigate and manage the risks associated with counterfeiting, bank of jamaica has enhanced the integrity of jamaica's banknotes by incorporating more state - of - the - art security features in the new series of notes. 2. enhancing features for the visually impaired the banknotes already in circulation have features which are specially designed to improve their recognition and use by members of the community of visually impaired persons. these features include large numbering and tactile or raised printing that is easily recognised by touching and feeling. the new banknotes include the use of a more durable substrate or base material, which is utilised in the features designed for visually impaired persons. this will result in a longer lifespan of the raised touch and feel features. 3. ensuring a clear distinction among the different denominations 1 / 2 bis - central bankers'speeches there are concerns among members of the public that the existing $ 500 and $ 5, 000 banknotes are not easily distinguishable especially in low - light conditions. by giving each banknote distinctly different colours, the redesign of the notes ensures that each denomination can be easily and clearly recognised and distinguished from other

five september quarters. contributing to the lower projected inflation out - turn are the expectations of stable capacity conditions, declining inflation expectations and stability in the foreign exchange market. the bank expects that domestic inflation for the fiscal year 2010 / 11 will be in the lower bound of the targeted range of 7. 5 per cent to 9. 5 per cent. the projection is underpinned by continued low consumer demand and a stable exchange rate. the risks to the inflation projection are balanced, as can be seen in the inflation forecast fan chart contained in the report. the upside risks include adverse weather conditions which could affect domestic production. the downside risks include a greater than anticipated contraction in demand due to sharper than expected reductions in real incomes. on 01 july 2010, the bank reduced the cash reserve requirement against jamaica dollar liabilities by 2. 0 percentage points to 12. 0 per cent. this was followed on 04 august 2010 by a reduction of 50 basis points to 8. 50 per cent in the rate of interest payable on the bank ’ s 30 - day certificates of deposit. the continued loosening of monetary policy was in the context of slower than expected expansion in money supply and private sector credit in the june quarter, which has kept underlying inflation stable. in addition, the impulses from imported inflation are expected to be negligible leading to a benign inflation environment. going forward, the central bank ’ s policy strategy will continue to be guided by its objective of achieving low and stable prices. boj losses i will now speak briefly on bank of jamaica losses. the bank is projected to sustain losses on its operations for fy 2010 / 11. it has increased its gross foreign assets through purchase of the proceeds of multilateral loan inflows, repayment by financial institutions of loans granted by the bank in the context of significant margin calls in late 2008 and through net private capital inflows associated with positive investor sentiment about the jamaican economy. interest income on foreign assets will continue to be very low, reflecting the monetary stance of central banks in the major developed countries. in addition, the bank ’ s local currency income from government of jamaica securities has been reduced with the successful implementation of the jdx. concurrently, the stock of open market liabilities will remain relatively high and, even in a declining interest rate environment, will continue to attract higher interest rates than is being earned on our assets. this is in a context where the liquidity emanating from the increased foreign currency inflows has to be