cash in circulation

A Call for Standards in Currency Processing

05.21.2012
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Pretty well every conference has a topical subject or theme. The prevalent one at ICCOS Americas in Miami in March was industry standards or, to phrase it better, the lack of them (and the corollary, the need for them!). The theme featured most strongly in Roland Costa’s paper ‘A Journey into the Next Generation – The Fed’s Perspective’ but was prevalent throughout the conference. And rightly so.

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The War On Cash

02.26.2012
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The Cashless Society – it seems that everywhere I go, I still hear the same story over and over again – cash is going away. Well, I am here to say that despite the monumental efforts of governments and other interested parties to dissuade us from persisting with paper and polymer, cash is indeed alive and well – and still growing in circulation.

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The Voice of Cash

11.06.2011
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What do grey squirrels and cashless payments have in common? Admittedly, the link isn’t obvious. The grey squirrel, classified as vermin in Northern Europe because it is decimating the population of the native, cute and fluffy red squirrel, is referred to by many as ‘a tree rat with good PR’. The connection is the power of PR (public relations) to generate a message that favours your subject, be it a grey squirrel or the cashless industry.

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ICCOS Asia 2011 – Will You Be There?

10.30.2011
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In an appropriate sequel position to my last post on conferences in the east versus west, comes the annual International Commercial Cash Operations Seminar (ICCOS) in Hong Kong, from November 13th through the 15th. Although there has ever been only one previous ICCOS in Asia, the experience and credibility of the organizers attracts a wide variety of central bank and commercial bank attendees, together with a good representation from associated equipment and software suppliers as well as partner organizations such as CIT’s and process outsource operations.

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Currency News – Investing in the Future

09.25.2011
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We gave some reasons to be cheerful in our comment in the July issue, and given the current daily predictions of financial collapse and economic gloom accompanied by highly volatile financial markets, we thought it is useful to see if the currency industry still does have good reason to smile! (And if you are wondering about the headline – we have stolen it from Ian Drury and the Blockheads, a pop group in the 1970s and a favourite of the editor).

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The Note/Coin Boundary

04.26.2011
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In currency management, the note/coin boundary and the calculation of where this should fall is critical to public acceptance and usage of banknotes and coins, to optimising inventory management, to minimising the costs of production and circulation and, as a result, to minimising the lifetime cost of ownership and maximising the income from notes and coins (ie seigniorage) for issuers.

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Rare Currency?

04.04.2011
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Who knew that Antarctica actually has it’s own currency. I have never seen or heard of this before. Now I am on the hunt for my own notes from the very frozen, southernmost continent. I can only wonder how many places there are to spend it?

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Competition or Cooperation in the Cash Industry?

02.28.2011
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As the technology used in the manufacture and handling of banknotes has advanced, so has the cost of product and feature development, IP protection and production. Add to these cost pressures, smarter buying by central banks, an increasingly-competitive market with over capacity of paper supply and more state sector banknote printers attempting to participate in the commercial market, and something has to change.

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Cash Circulation Case Study

01.25.2011
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Since last year, Currency News has been running a series on cash circulation models around the world, and has so far looked at three countries: Norway, Israel and China. In Israel and Norway, the central bank has removed itself – either partially or entirely – from the cash circulation process (Norway has even outsourced the destruction of banknotes). In China, on the other hand, the central bank continues to maintain direct control over cash circulation, up until the cash reaches the commercial banks. The focus now turns to South Africa, an early adopter of global cash management technology which has one of the most forward-thinking cash industries in the world.

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The Less-Cash Society

01.13.2011
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One of the most common debates I hear is about the use of cash. Is it growing or declining? There was a recent report from the UK that indicated cash use was surpassed by other forms of payment for the first time ever. I was recently sent a link to a report from the Aite Group that predicts a decline in cash usage over the next four years. Interestingly however the report does conclude that although there will likely be a decline in cash usage in certain demographic groups, there will be an increase with others.

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Counterfeits: the Importance of Knowing Your Money

10.07.2010
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Central banks differ in their approach to the withdrawal of banknotes with old designs once new versions are issued. A period of co-circulation is inevitable, after which banks have a choice between allowing co-circulation of old and new or rapidly withdrawing the old notes (which it may decide to do when redenomination is involved or to replace a series that has been subject to large-scale theft or counterfeiting). But whereas some issuing authorities offer a period of a few months to a year before the old versions cease to be legal tender, many others allow the two versions to co-circulate indefinitely – with old notes only withdrawn when they are unfit.

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The Cost of Currency

08.11.2010
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In recent weeks there have been a number of articles related to the cost of creating and maintaining cash in society. On the one hand it should be fairly obvious that each note and coin in circulation has an inherent cost of manufacture. What is less clear is the ongoing cost of circulating authentic and fit notes and coins. First, let’s take a look at the obvious – what does it cost to make a note or a coin. The answer may not be as simple as the question.

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East African Community – Single Currency

07.27.2010
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On 30 June, at the Sheraton Hotel in Kampala, five ambassadors stood before a map of East Africa, on which ribbons had been placed around the borders of Burundi, Kenya, Rwanda, Tanzania and Uganda. Each ambassador then proceeded to cut the ribbon at the border post of his country, in a symbolic gesture that marked the opening of a common market within the East African Community (EAC).

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Valuable Change for US Notes

07.13.2010
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The Federal Register has published for public comment changes to United States Federal Reserve Notes to make them accessible to the blind and the visually impaired, knowing that the alterations will financially affect some ATM owners and operators.

“The purpose of this Federal Register notice is to inform the public of the features the Bureau of Engraving and Printing intends to propose to the Secretary of the Treasury to accommodate people who are blind and visually impaired and to solicit public comment on the proposed accommodation,” the Federal Register wrote in the proposal titled, “Meaningful Access To United States Currency for Blind and Visually Impaired Persons.”

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Counterfeit Deterrence – Beating the Criminal Element

07.06.2010
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Call it human nature, but ever since the invention of paper money, people have tried to imitate and counterfeit it. The result has been an unending race between issuing authorities and perpetrators. This article, which is based on my contributions to the Banknote 2009 and 2010 Currency conferences, is a review of how authorities have historically tried to deter counterfeiting and how they have responded to new threats. From this perspective, I will then explain the role of the Central Bank Counterfeit Deterrence Group (CBCDG) and its activities, concluding with a short assessment of recent developments in counterfeit production techniques and how to address future threats.

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Is The UK About To Dethrone Cash As King?

05.04.2010
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It is well known that the UK is a nation of early adopters and as such has been watched by many a pundit for signs of paradigm shifts. The institution of cash as a preferred payment medium is one of those unassailable paradigms. Or is it? It was recently reported by the UK Payments Council that for the first time it is predicted that cash will make up less than 50% of payments, perhaps as soon as 2015.

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Death By A Thousand Cuts

04.26.2010
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The recent report by the Payments Council – the body responsible for setting the strategy for payments in the UK – should be a wake-up call to us all in the currency industry. Although the report covers the UK only, it is a trend that is typical of payment systems in many countries around the world. In summary, it documents a decline in the use of cash in the last decade and forecasts a further decline, detailing changes that have been taking place gradually, but steadily. Is this a case of ‘death by a thousand cuts?’ And, if so, is there anything we can do about it?

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New US $100 Note

04.22.2010
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Yesterday it was announced in a joint press release that a new $100 US note will enter circulation next February (2011). In a bold move the BEP and FRB have decided to add some new security features to the most often counterfeited US denomination. This will be the first time that OVD’s (Optical Variable Device) will be used on any US note. Could this be the beginning of an even larger change in US currency design?

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The Feel of Money

03.29.2010
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It is said that the only constant in life is change – no, not the coin in your pocket variety but the sort that challenges us to continuously adapt.First came the news that Canada will be changing their currency to a polymer based substrate. Next, the Bureau of Engraving and Printing (BEP) is now suggesting new changes for the US green-back, which actually isn’t so green anymore.

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It Just Feels Funny

03.05.2010
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Having been involved in the currency handling business for many years and having experience in many countries means that I have had the opportunity to handle many different kinds of “paper” money. I placed the word paper in parentheses for a reason, because in today’s world not all currency is made of paper. Australia started the trend away from paper/cotton based currency a few years ago. They were followed by Mexico and a handful of other countries. Now Canada is joining the ranks.

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The Cost of Cash

02.24.2010
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Recently an associate sent me an article regarding the relative “cost” of different retail payment media – credit cards, debit cards and cash. While the article (reprinted below) makes a convincing argument for cash discounts, it neglects to understand or incorporate the real cost of cash in society. I am sure those of you reading this post will agree with me that there are hidden costs of cash that most of society never sees or thinks about. So, what is the cost of cash?

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Currency Supply Chain Optimization and Yield Management

01.26.2010
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To tie the concepts of optimization and yield together as it refers to currency we need to understand the need for money. Without some form of money we would have no way to trade. Without trade we would have no commerce and without commerce we would have no way to better our station in life. Betterment of our situation is as fundamental to the human condition as breathing – we all want to succeed and make a better life for our communities (communities of family, friends, neighbours, countrymen, etc.). Therefore the faster we can make money move the more opportunity we have to profit from that movement.

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The 2009 Fiserv Cash & Logistics Connect Forum – Another Stellar Roundup

10.14.2009
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Last week, I had the pleasure of speaking at Fiserv’s Cash & Logistics Connect Forum in Boston. While I certainly liked speaking on the topic of cash management in a year when there have been so many interesting changes (and so much more cash in circulation!), I mostly enjoyed meeting so many people who live and breathe currency management on a daily basis.

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