Bank of Canada to print extra money
Monday, November 2
The Bank of Canada plans to print extra bank notes in the coming year, anticipating a run on cash by people living in fear of the Year 2000 computer bug.
A number of banks are expecting that nervous customers will sock away more bills than usual as 2000 approaches. As a result, the central bank is working with financial institutions to determine exactly how much extra money it will need to print.
"I think people might think it is prudent to hold a bit more cash," a Bank of Canada spokesman said. "We are, as other central banks, looking ahead and saying there could be some additional demands as Y2K [the year 2000] approaches."
The Bank of Canada is not alone in its decision to print more money. In a report published this month, the Bank of England said it will run off extra cash in the runup to January, 2000.
And in New Zealand, the Reserve Bank said it will keep old bank notes - which are due to be replaced next year by flexible plastic ones - in vaults instead of destroying them to ensure there will be enough cash available to its customers into 2000.
As well, the U.S. Federal Reserve Board announced last month it will have an extra $50-billion in cash on hand, just in case there is a run on money |
