Jersey

Up to £25m more Jersey banknotes to be issued

Jersey bank notes
Image caption The Jersey treasury and resources department backs Jersey banknotes with UK sterling

The amount of Jersey banknotes allowed in circulation will increase by £25m, if new legislation is passed next year.

Currently the States of Jersey can issue up to £100m in Jersey bank notes, which are sold to high street banks in exchange for UK pounds.

Russell Crowe, head of the States' treasury and investment management unit, said the increase would allow the government to invest more sterling.

He said it would boost the government's returns from "almost from nothing".

The draft legislation is due to be presented to the States in January, but Mr Crowe said the date could be brought forward if the demand for money during the Christmas shopping season increased significantly.

The amount of currency in circulation is expected to increase from £83m to about £98m during the Christmas period.

Robert Kirkby from the Jersey Chamber of Commerce said it was "amazing" that people were continuing to use cash in a digital age.

He said it would be interesting to see the impact so-called young "digital natives" would have on consumer spending habits next year.

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