10.07.2010
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cease to be legal tender, many others allow the two versions to co-circulate indefinitely – with old notes only withdrawn when they are unfit.
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07.06.2010
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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