Plastic money, renovations boost Bank of Canada operating costs by 23%

OTTAWA – The cost of printing plastic money is contributing to a 23 per cent jump in operating costs at the Bank of Canada this year, but the institution says the investment in more durable bills will pay off in the long run.

The central bank’s second-quarter report shows operating costs ballooning by $114 million to almost $606 million this year, compared to 2012.

Almost half the difference — or just above $50 million — is due to the increased cost of producing the new polymer bills, even though the bank is not making as many as it initially planned.

It has earmaked $166 million for the bills, which includes production of previously introduced $100, $50 and $20 notes and the launch of new $5 and $10 bills later this year.

Still, the bank points out that the plastic money is expected to last 2.5 times longer than the previous cotton-based notes.

As well, the bank says it anticipates additional costs as it embarks on major renovations to its downtown Ottawa office complex.