TODAY NICARAGUA NEWS – The 1,000 Cordoba note will begin circulating on December 1, says the Banco Central de Nicaragua (BCN).
Despite the suspicions about a possible devaluation of the Cordoba that generated in some sectors of the population the entry into circulation, the new 1,000 Cordoba note will be the highest denomination of the country, the Nicaraguan Foundation for Economic and Social Development (Funides).
Funides assures that such issuance was necessary to reduce transaction costs.
“It has a cost not to have high denomination bills, there are high denomination transactions that by their nature are more comfortable to carry them with high denomination bills,” said Funides executive director Juan Sebastián Chamorro.
The new 1,000 Cordoba will come in two designs, the first to start circulating on December 1 will commemorate the centenary death of Nicaraguan poet Rubén Darío and will have a limited circulation; the other design, alluding national sovereignty, will begin circulating on January 2, 2017.
The two designs of the new bill contain several measures of security, among them: wire with three-dimensional image, seal that changes of color and mark of water.
Chamorro recalls that in 2010, when the five hundred Cordoba bill circulating at the moment was issued, there was also a fear of a possible devaluation and effects on inflation. According to a regression analysis conducted by Funides, there is no evidence that the issuance of the five hundred Cordoba bill has influenced inflation.
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