‘Wear and tear’ the main reason for banknote exchange
Covid-19 raised fears of banknote contamination, but historical exchange is mostly due to worn notes
The most common cause of damage requiring banknote substitution was general ‘wear and tear’ (51.5%), followed closely by contamination (42%), according to new data from Currency Benchmarks 2020.
Between 2019 and 2020, a sample of 33 central banks in this segment reported more than 11.8 billion banknotes had been exchanged due to damage. Perhaps surprisingly, more than 40% of central banks reported banknotes had been returned because they had been damaged by being chewed or eaten.
Currency
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Currency
Currency Benchmarks 2024 – model banks analysis
Data highlights differences in cash management between central banks
Currency Benchmarks 2024 – executive summary
Data sheds light on banknote design features, access to cash policies and cash cycle management
Currency Benchmarks 2024 report – securing cash payments
As transactional cash use falls, many central banks are adopting policies to safeguard cash access
Most central banks forecast cash demand over one to three years
Median central bank expects 5% increase in cash in circulation in 2024
G+D dominates central bank note sorting
Giesecke+Devriant’s BPS M7 machine is very widely used among central banks
Nearly half of central banks have access to cash policy
High income countries slightly more likely to maintain access to cash policies
Smaller banknote denominations have shorter lifespan
High income central banks produce longer-lasting cash
Middle income central banks see largest volume of counterfeit notes
Foil remains least used security feature for banknote production