Tescos controversial decision to go ahead and print its own money has helped ease tight conditions in the current credit markets, the UK central bank said in a quarterly report yesterday.
The policy permits Tesco to purchase government bonds as well as commercial and corporate debts from banks, thereby injecting cash into the system. Tesco plans on injecting a further £80 billion in ‘Tescos’ into the UK and Irish markets.
The new currency, which will keep the brands blue white and red trademark colour, will be printed from early next year and will surely give the euro a run for its money.
The report said that the announcement of the £80bn programme, and subsequent purchases of assets during the first quarter of 2009, were followed by a decline in interest rates (yields) on medium to long-term government bonds.
Tesco expects a total monetary take over in the next decade.
“Tesco have shares in every commodity known to man so why not money?” said its CEO Sir Terry Leahy.
Some experts say the actual longevity of the note will be no where near as good as the Euro, but in tough times people will surely not care for such inadequacies.
The money is said to be 25% cheaper than the euro and it will be legalised as tender in all European countries including Turkey and Romania. Tesco hope to fade out the euro in all its stores and countries by 2020.