ARTICLES ON WORLD BANKNOTES
National Bank of the Republic of Belarus
On redenomination of the Belarusian ruble since July 1, 2016
Beginning on July 1, 2016, the legal tender of the Republic of Belarus the Belarusian ruble will be redenominated. A corresponding decision was taken by Edict of the President of the Republic of Belarus No.450 dated November 4, 2015.
The redenomination will be carried out by means of substitution of the banknotes in circulation of the 2000 series by the banknotes and coins of the 2009 series in proportion of 10,000 Belarusian rubles of the 2000 series per 1 Belarusian ruble of the 2009 series. That is, having regard to the chosen increase in the scale of the Belarusian ruble value (1:10,000), the current banknote of the lowest denomination 100 Belarusian rubles will be replaced by the lowest denomination of the new currency line 1 copeck.
A total of seven denominations of banknotes 5, 10, 20, 50, 100, 200, and 500 rubles and eight denominations of coins 1, 2, 5, 10, 20, and 50 copecks, and 1 and 2 rubles will be put into circulation beginning on July 1, 2016.
The general concept of the new banknotes design meets the motto "Belarus is my country". Each banknote is dedicated to one of the regions of Belarus and the city of Minsk. The coincidence of the regions and the banknotes denominations was determined in alphabetical order. The design of the banknote of 5 ruble denomination is dedicated to Brest region, 10 rubles to Vitebsk region, 20 rubles to Gomel region, 50 rubles to Grodno region, 100 rubles to Minsk region, 200 rubles to Mogilev region, and 500 rubles to the city of Minsk. The design of new banknotes of the 2009 series maintains continuity of the line of banknotes of the 2000 series as to the use of images of the architectural and urban monuments.
The obverse of the coins being put into circulation bears the image of the State Coat of Arms of the Republic of Belarus, the reverse the numerical symbols of coins denominations.
The currently circulating banknotes of the 2000 series will be the sole legal tender for making cash settlements in the Republic of Belarus till July 1, 2016.
From July 1, 2016 to December 31, 2016, the banknotes of the 2000 series and the banknotes and coins of the 2009 series will be in parallel circulation and subject to obligatory acceptance without restriction in all kinds of payments performed by all economic entities.
During the next five years from January 1, 2017 through
December 31, 2021 the currency units of the 2000 series
will be exchanged for the currency units of the 2009 series in
any sum without restriction and charging commission.
Molise Lawrence - 19 February 2016
Maseru Lesotho will soon launch a new M200 bank note as soon as all the necessary formalities are completed. Government spokesperson Mr Khotso Letsatsi made the announcement at a media briefing yesterday but added the note will only be used after formal introduction.
Normally central banks introduce new notes from time to time in order to stay ahead of counterfeiting. Meanwhile, Letsatsi said Lesotho had an agreement with Malawi to avoid double taxation and prevent tax evasion.
Nowadays people work in different places or countries and it is important to ensure people are not taxed twice, Letsatsi said.Other countries with which Lesotho has a similar agreement include the United Kingdom, Northern Ireland, Botswana and Swaziland.
11 February 2016
On the occasion of the 50th anniversary of decimal currency, the Reserve Bank is pleased to announce that the first of Australia's next generation of banknotes, the new $5, will be issued from 1 September 2016.
The Governor, Glenn Stevens, said:
The new banknotes will have a range of security features that have not previously been used on an Australian banknote. The new series will also include a tactile feature to help the vision-impaired community distinguish between different denominations of banknotes.
The inclusion of these new features and updated designs mean that the banknotes have a fresh, modern feel. At the same time, key features of the existing series of banknotes, such as the colour, size and people portrayed on each denomination, have been maintained. The public will recognise the new banknotes.
One feature of the new designs is the depiction of a different
species of Australian wattle on each denomination. National
Wattle Day, 1 September, has therefore been chosen to issue the
new $5 banknote. Full details of the design will be revealed in
the middle of the year.
Central Bank of the Republic of
Argentina will release the new notes of 200 and 500 pesos
15 January 2016
It was announced Friday by the Central Bank. The new banknotes of 200 and 500 Argentinian Pesos will begin to circulate in mid-year.
The bill 200 pesos will be represented by the southern right whale on its obverse and the Argentine Sea, Antarctica and South Atlantic islands on the reverse.
In the case of 500 peso bill, it will be illustrated by a jaguar on the front and the northeast region on the back.
Moving to Polymer Banknotes
The next Bank of England £5, £10 and £20 banknotes will be printed on polymer.
The new fiver will be issued in September 2016. Around three months before, the full details of the design and security features will be available and a range of training materials for retailers and businesses will be released.
The £10 note will be issued in 2017 and the £20 note by 2020.
Polymer banknotes are cleaner, more secure, and more durable
than paper banknotes. They will provide enhanced counterfeit
resilience, and increase the quality of banknotes in circulation.
8:18 AM Monday Oct 12, 2015
New Zealand's new banknotes will be released into circulation today, but might not be in peoples pockets for some time.
The design of the new $5 and $10 notes were shown to the public in September.
The new notes feature brighter colours, but the same famous faces and flora and fauna design features.
Head of Currency at the Reserve Bank Brian Hayr said banks and retailers have been given the sign off to dispense the new notes today.
"Approximately 345,000 of the new Series 7 banknotes have been dispatched to banks to meet their orders. This compares with about 45,000,000 Series 6 $5 and $10 notes currently in circulation," Mr Hayr said.
However, the public might not get to see a new note for some weeks, he said.
"This is because the Reserve Bank distributes banknotes only when it receives orders from banks. Orders for replacement of $5 and $10 notes come in less frequently than other denominations as they tend to circulate much more between retailers and consumers."
The Reserve Bank expects more orders to come in from retail banks over the next few months as they gradually replace old notes.
The old notes will still be legal tender and people can pay with either the new or old bank notes.
The brighter colours are not the only new feature to the notes. They also contain more sophisticated security features, including:
A large clear window that contains a hologram featuring a fern, map of New Zealand, and the same bird that features on the left-hand side of the note.
When the note is tilted a rolling bar, that changes colour, flashes across the bird. On the reverse of the note, in the same position, a similar effect can be seen in the fern window.
If the notes are held up to the light, coloured irregular shapes on the front and back combine like puzzle pieces to show the note's denomination.
Raised ink features on both sides of the notes, including the words "Reserve Bank of New Zealand Te Putea Matua" and "New Zealand Aotearoa".
Published: 17 Aug 2015 11:48 GMT+02:00 by Malcolm Curtis
The Swiss National Bank (SNB) plans to introduce the first of its new high-tech banknotes in April next year six years later than initially planned after reported technical problems with its paper supplier.
The new 50-franc banknote will be released next year followed by the 20-franc note in 2017, the central bank said in a statement on Friday.
The ten-franc, 100-franc, 200-franc and 1,000-franc bills will be subsequently issued at half-yearly or yearly intervals until 2019, the SNB said.
They will mark the ninth series of banknotes to be issued by the SNB since it started producing banknotes for Switzerland in 1907.
But the latest series has encountered problems and repeated delays since a 2005 competition to design the new money, designed with the latest security features to deter counterfeiting.
The winning designs featuring blood cells and embryos, by artist Manuel Krebs, was ultimately abandoned by the SNB after public opposition.
Designs by Zurich graphic artist Manuela Pfrunder, the second place winner of the competition, were finally adopted.
Unlike the current banknotes, Pfrunder's designs do not feature images of famous Swiss people.
The 50-franc note shows a mountain and figures who appear to be hiking on one side with an image of the sun on the reverse side.
Skiers slaloming through a race course are on the ten-franc note but human figures are largely absent from designs for the other notes that include representations of a butterfly, snow crystals and wavy lines plotted by a graph.
After Pfrunder's designs were decided upon, Orell Füssli, the Zurich-based printer for the central bank, reportedly encountered technical problems with its supply of paper, which must be capable of incorporating the new security features.
The exact nature of the features will be disclosed when the first 50-franc denomination is put into circulation next year.
The SNB said the new notes are designed to last at least 15 years.
It emphasized that the current series of banknotes put into circulation between 1995 and 1998, remain secure and can continue to be produced in the quantities needed.
Indeed, according to a 2011 report from the University of Lausanne, Swiss banknotes remained far less likely to be counterfeited than the euro, the US dollar or the British pound.
The report, citing information from central banks, said the ratio of counterfeited banknotes was about one in 100,000 real banknotes for the Swiss franc.
The is compares with ratios of one in 20,000 for the euro, one in 10,000 for the dollar and one in 3,333 for the pound.
Bank of the Republic of Colombia -
Banco de la República confirms that a new banknote with
denomination of C$100,000 will be issued
30 January 2015
At the end of 2015 or early 2016, Colombians can make their payments and purchases with the new bill of 100,000 pesos.
This was made clear Friday by Jose Dario Uribe, manager of the Bank of the Republic, noting that the decision to issue a banknote for that denomination is already taken.
"It is set to release the bill of 100,000 pesos, and on one side will depict the figure of former President Carlos Lleras Restrepo" he said.
The official did not provide further details of the features that have on the new ticket, the date of the circulation, or the cost of production of the paper money.
The ticket of 100,000 pesos will become the highest denomination in Colombia, and exceeds 50,000, which came out in 2000.
At the close of 2014 they circulated about 2,603 million notes of different denominations, with a value of more than 55.1 billion pesos.
News Conference Berne, 13 December 2012
Introductory remarks by Jean-Pierre Danthine
Issuance of the new banknote series in 2015 at the earliest
In February 2012, the National Bank informed the public that
the new banknote series would be postponed. Today, I would like
to provide some background information on our decision. The
National Bank is committed to putting banknotes into circulation
that are state of the art in terms of both their design and their
technological aspects. In order to meet this standard, such a
project must be launched at an early stage. Integrating and
combining security features involving new technologies that have
not previously been used for banknotes presents a special
challenge. Since the development phase for new security features
is very long, launching a new seriesis likely to take several
years for the technical feasibility assessment alone.
Certaininsights can only be gained during the actual serial
production. The development of the new banknote series began in
2005 with a design competition. In the planning phase for the
technical feasibility and during initial production tests in
2010, it became evident that the complexity of the new security
features necessitated a postponement of the issue dateto autumn
2012. In autumn 2011, during an early phase of the serial
production, technical difficulties arose which had not been
discernible in the testing phase,whose results were positive.For
this reason, the SNB this year decided to conduct a comprehensive
re-assessment of the entire project together with the industrial
partners producing the new banknote on its behalf. As a result,
several mostly technical measures were defined and in some cases
have already been implemented. These measures should ensure that
the series can go into long-term industrial production. Owing to
the complexity and scope of the necessary work, the first
denomination of theseries, the CHF 50 note, may be expected in
2015 at the earliest. The SNB will announce the issue date as
soon as production of the first banknote denomination has been
completed. Since the National Bank wants to continue meeting the
highest quality standards, it has accepted a postponement in the
new issue, a decision which was rendered all the easierbecause
the banknotes currently in circulation continue to offer a high
standard of security.
Competition (Results) For Artistic Design of New Swiss Banknote Series:
No new Dutch banknotes will be printed in the Netherlands in 2012.
For the first time, since the introduction of the euro, printing company Joh. Enschede from Haarlem, lost the printing contract of The Dutch Bank (DNB).
The Dutch bank will have all banknotes printed in Germany and Great Britain late next year.
The Dutch Bank is required to order the new banknotes from European printing companies, in order to promote fair competition and to work in a cheap and efficient way.
The contract goes to the German printers Bundesdruckerei en Giesecke & Devrient and the British printer De La Rue International.
DNB made the contract in collaboration with seven other central banks from the EU.
De Nederlandsche Bank (DNB) acts as an adviser to the Dutch government. Also, it performs important functions in several consultative bodies. In offering independent economic advice, DNB contributes to sound economic policy-making on both the national and the international level. DNB is able to do so on the strength of its expertise, its reputation and its independent position.
Together with the ECB and the central banks of
the other euro area countries, DNB is engaged in developing
secure banknotes. DNB issues new banknotes and keeps the banknote
circulation in shape. Every day, DNB checks five to six million
banknotes for authenticity and fitness. Soiled and damaged
banknotes go straight to the shredder and are replaced by new
Banknotes.com broadcasts on a Radio around
March 31, 2003 around 9:00 am Pacific Time. Live 5 minutes broadcast interview about Iraqi currency on KUGN Radio station (Eugene, Oregon) http://www.kugn.com/index.htm
April 1, 2003 pretaped 4 minutes interview on 9:15 am local time about Iraqi currency on CHQR Radio station (Calgary, Alberta, Canada) http://www.qr77.com
April 3, 2003 pre-recorded interview on 1:45 pm Australia local time about world and Iraqi currency on Talk 1116 Radio 3AK Radio station (Melbourne, Australia) http://www.3ak.com.au
Thanks for listening!
Press about Audrius Tomonis - Banknotes.com:
The New York Times: http://query.nytimes.com/gst/abstract.html?res=F00D14FF3C5D0C758CDDA80894DA404482
Wired News: http://www.wired.com/news/business/0,1367,58402,00.html
Boston Globe: http://www.boston.com/dailyglobe2/109/business/It_s_like_throwing_money_away+.shtml
OstEuropa.ch - Banknotes.com - best website of the month - http://www.osteuropa.ch/mainmenu/dossiers/toplink.htm
January 12, 2010:
Moneys got soul: What goes on our bills says a lot about us: by Clare Raspopow: http://pre2010.thelinknewspaper.ca/articles/2074
# As of 1 July 2005, the leu (ROL), Romania's
legal tender, will be subject to redenomination so that 10,000
old lei, in circulation on that date, shall be exchanged for 1
new leu (RON).
# The existing banknotes and coins, i.e. the old lei, shall be legal tender until end-December 2006.
# By 31 December 2006, the existing banknotes and coins, i.e. the old lei, are to be replaced gradually by the new banknotes and coins.
# Starting 1 January 2007, the exchange shall be made only at the NBR branches carrying out payments and at the offices of the credit institutions authorised by the NBR Governor's order to perform the exchange.
# The exchange shall be made during a three-year period, at most, until 31 December 2009*. *) NBR drafted a proposal to the Parliament to abilitate the bank to exchange the old leu for unlimited period.
Info source: http://www.denominare.ro/common/htmls/en.htm
02 September 2003
RFID tags make it into bank notes
Imagine a world full of money that can tell you where its been spent.
By Martyn Williams, IDG News Service
Hitachi has developed an RFID (radio frequency identification) chip that requires no external antenna and makes possible the embedding of tracking and identification chips in bank notes, tickets and other paper products.
As with competing chips, Hitachi's Myu chip requires antennas through which data can be received and transmitted to a chip reader, all of which draws power. In the case of the current generation Myu chip, this antenna can be between five centimetres and seven centimetres long, said Keisaku Shibatani, a spokesman for Hitachi.
Even though the chips themselves are very small, at 0.4 millimetres square, the large antenna needed effectively limits their use in certain applications. The new Hitachi chip is the same size as the current model although requires no antenna. This means it is suitable for use in a range of applications including embedding in bank notes and documents, said Hitachi.
In May this year, a Japanese media report said Hitachi was talking with the European Central Bank on a project to embed euro bank notes with RFID chips. Shibatani, the Hitachi spokesman, said that such a project was not underway at present.
The new announcement confirms that such a project will soon be technically feasible although several other potential hurdles remain, such as hitting a low price point and also combating growing consumer resistance to RFID.
The company announced one application for the new chip. It will be embedded into tickets for the Expo 2005 fair that will take place in Aichi prefecture in central Japan in 2005.
A production schedule for the chips has not yet been decided and neither has pricing, said Shibatani. The chip announced Tuesday operates in the Japanese RFID band, which is around 2.4GHz, he said.
First announced in 2001, Myu chips contains a 128-bit identification number that is burned into the chip at the time of manufacture meaning it is not possible to change the number once produced.
Article source: http://www.techworld.com/news/index.cfm?fuseaction=displaynews&NewsID=412
07 July 2003
Fact Sheet: New Iraqi Dinar to Be Released in October 2003
(Fact sheet from the State Department's Bureau of Near Eastern Affairs)
On July 7, the Coalition Provisional Authority
in Iraq released the following fact sheet about the new Iraqi
dinar that will replace aging Iraqi banknotes beginning October
(begin fact sheet)
Fact Sheet about New Iraqi Banknotes
In close consultation with financial experts from Iraq and the international community, a new series of Iraqi banknotes will be introduced from 15 October. These new notes will address problems like the shortage of 250-dinar notes and the poor quality of the notes in circulation.
Some key facts about these banknotes:
The new notes will unify the currency across all of Iraq. Once the exchange of notes has been completed, these notes will be the official banknotes for the entire country.
The official conversion rates will be as follows:
One normal Iraqi dinar ("print dinar," as used in most of Iraq) will be worth one New Dinar. One former national dinar ("Swiss dinar", as used in some Northern areas) will be worth 150 New Dinars.
Current banknotes -- both the normal Iraqi ("print") dinar and the former national ("Swiss") dinar -- will continue to be accepted at full value until the exchange has been fully completed.
The new banknotes will be available from 15 October 2003.
Official exchange locations will be announced before 15 October. These will include branches of the Rasheed and Rafidain banks.
Exchange will be possible over a three-month period, from 15 October to 15 January. There is no need for people to exchange their notes as soon as the exchange begins.
People who now hold money in bank accounts will not need to withdraw this money to exchange. All bank accounts will be automatically converted to new notes at the official rate.
The new banknotes will look very similar to the former national ("Swiss") dinar notes that were used throughout Iraq until the early 1990's, and are still used in some Northern areas.
-- The new banknotes will have a number of advantages over normal Iraqi ("print") dinars:
-- They will be much better protected against counterfeiting.
-- They will be much more durable and suffer less "wear and tear."
-- They will have many more denominations, so they will be much more convenient for people to use.
The new currency will be fully convertible into
other, non-Iraqi currencies -- including the dollar -- at the
prevailing market rate.
(end fact sheet)
Article source: http://www.usembassy.it/file2003_07/alia/a3070705.htm
Source: Canadian Bank Note and http://biz.yahoo.com/cnw/030317/polymer_banknotes_1.html
Canadian Bank Note Company, Limited to Produce First Polymer Banknotes in Africa
Monday March 17, 8:00 am ET
OTTAWA, March 17 /CNW/ - Canadian Bank Note Company, Limited (TSX:CBK - News) announced today the signing of a contract with the Bank of Zambia for the printing and supply of two denominations of Kwacha banknotes to be printed on a high security polymer substrate. This contract marks the first polymer banknotes to be issued in Africa and is indicative of increasing global acceptance of "polymer" as a new and advanced banknote technology. The dollar value of the contract amounts to less than 10% of CBN annual sales.
"Polymer substrate is playing a key role in shaping the future of banknotes. We have developed the necessary technology to include polymer in our product offering," explained Hutch Holton, President, Payment Systems. "For countries in which banknotes need the highest level of security or have a short lifespan due to climate conditions, polymer is an excellent means of ensuring the security and longevity of the local currency. The Bank of Zambia's decision to issue two of its denominations in polymer banknotes positions this country as a leader in the introduction of this technology in the region."
Polymer banknote substrate is a uniquely manufactured and coated, thin, resilient plastic material that offers a significantly longer circulation life for banknotes than traditional paper-based notes. These banknotes deliver enhanced security, cleanliness and offer a significant reduction in the costs associated with the issuing, inspection and withdrawal of banknotes from circulation. Australia and New Zealand were the first countries to adopt polymer for all their banknotes. Numerous other countries have a mix of paper and polymer notes in circulation.
Canadian Bank Note Company, Limited supplies printed products and related issuing and control systems in four business areas; Lottery, Identification, Payment and Shareholder Services. The Company has extensive manufacturing operations for printing currency, passports, visas, lottery tickets, postage and other related products as well as for producing hardware devices such as passport and card readers and lottery terminals. The Company has a large complement of software engineers for designing software systems. Products, services and systems are now marketed in more than 40 countries.
CBN is listed on The Toronto Stock Exchange under the symbol CBK.
For further information
H. Hutchinson Holton, President, Payment Systems, Canadian Bank Note Company, Limited, Tel: (613) 722-6607 X 4419, E-mail: firstname.lastname@example.org
Source: Canadian Bank Note and http://biz.yahoo.com/cnw/030317/polymer_banknotes_1.html
Week in Review Desk | January 6, 2002,
The Color of Consensus
By TOM ZELLER (NYT) 693 words
Late Edition - Final , Section 4 , Page 16 , Column 5
ABSTRACT - European Central Bank hoped to evoke unity in design of new euro; photos of some key elements of designs (M)5 AMERICAN travelers have long joked that European banknotes, with their bright colors, varied sizes and Dada designs, have all the gravitas of Monopoly money. But last Tuesday, these fanciful and vibrant expressions of cultural identity were replaced by the euro, a somewhat more vanilla byproduct of the design-by-diplomacy method that characterizes nearly every aspect of a unifying Europe -- and nostalgia began to set in.
sorry to see so many beautiful European paper notes go,'' said
Audrius Tomonis, an avid collector whose Web site, Banknotes.com, provides
numerous examples of the disappearing specimens. ''On the other
hand, the design of the euro is very
professional,'' he said.
To purchase full article go to it's source, the New York Times: http://query.nytimes.com/gst/abstract.html?res=F00D14FF3C5D0C758CDDA80894DA404482
NATIONAL BANK OF ROMANIA
PRESS RELEASE - 16 September 2002
Withdrawal from circulation of the ROL 10,000 note - year of issue 1999 and ROL 50,000 year of issue 1996
Pursuant to the provisions under Art. 19 of Law 101/1998-The NBR Act - subsequently amended and supplemented, the National Bank of Romania shall withdraw from circulation as of 1 October 2002 the banknotes with face value ROL 10,000 - year of issue 1999 and those with face value ROL 50,000 year of issue 1996.
After 31 December 2002 the said banknotes cease to be legal tender.
The withdrawal of the banknotes with face value ROL 10,000 - year of issue 1999 and those with face value ROL 50,000 year of issue 1996 shall be carried out as follows:
Between 1 October - 15 December 2002, the above-mentioned banknotes will be received in the usual way from individuals by all economic agents and other institutions which are bound to receive the banknotes, not to put them again in circulation, and to deposit them on a daily basis along with the cash receipts with the banks where they hold their accounts.
Between 16 - 31 December 2002, the banknotes will be accepted only by banks from individuals, economic agents and other institutions, for payment or exchange. Commercial banks shall no longer put the banknotes in circulation, but deposit them with the National Bank of Romania.
As after 31 December 2002 the banknotes with face value ROL 10,000 - year of issue 1999 and those with face value ROL 50,000 year of issue 1996 cease to be legal tender, commercial banks shall no longer receive them from individuals, economic agents or other institutions, and shall not exchange them.
Between 1 January - 30 June 2003, the banknotes with face value ROL 10,000 - year of issue 1999 and those with face value ROL 50,000 year of issue 1996, which ceased to be legal tender, may be exchanged by the National Bank of Romania branches only.
World: Europe's Funny Money
By: Martin Walker, UPI Chief International Correspondent
Published: Wednesday, August 08, 2001, 02:20:31 PM EST
GENEVA, Switzerland, Aug. 8 (UPI) -- Something very odd is happening to Swiss banknotes.
The Swiss National Bank has for the past decade and more planned for a steady reduction in the numbers of banknotes available, as credit cards and electronic transfer payments increasingly take the place of cash.
Instead, demand for one of the world's most stable and respected currencies continues to grow, particularly for high denomination notes. Over the past year, according to official statistics from the national bank, the supply of 1,000 franc notes (each one worth roughly $500) has increased by 7.1 percent. There are now 4.1 percent more 500 franc notes, and 6.2 percent more 200 franc notes in circulation than there were a year ago.
"We are observing a transfer of money into the Swiss franc, notably in high denomination banknotes", says a bank spokesman. "But we have no information at our disposal on the origins of this demand."
Speaking off the record, however, Swiss bankers can make a good guess. Indeed, it is an open secret that Switzerland is enjoying, if that is the right word, the euro effect.
Europe's new single currency comes into force on E-Day (as in E for euro) on January 1, just over 100 days away. And all the little piles of deutschmarks, French francs and Spanish pesetas and Austrian schillings and Italian lire that have been carefully hidden away from the tax authorities under mattresses and in safe deposit boxes will no longer be legal tender.
Sure, they can take their old notes to the bank and exchange them for crisp new euro notes with their bland designs of bridges. But every country has put limits on the amounts of cash transfers, and the tax authorities are expected to keep a beady eye on big transactions.
The owners of piles of cash are thus changing their obsolescent national banknotes for currencies that will survive the coming of the euro. The Swiss franc, the British pound and above all the U.S. dollar are the preferred cash havens, which helps explain the surprising strength of these currencies on world markets.
Economic logic, and the slowdown in growth, might argue that the dollar and the pound are far too strong these days against the European currencies. The need of millions of Europeans to launder their cash ahead of E-Day helps explain why these currencies are still so much in demand.
There are no reliable figures, but Bank of England officials have made some private estimates of the private cash hoards that are being unloaded. They reckon that at least 100 billion deutschmarks (roughly $50 billion) and 200 billion French francs (another $30 billion) and 4 trillion Spanish pesetas (another $20 billion) and 100 trillion Italian lire (another $50 billion) is being shifted into new assets. Add up these lowball estimates, and we are talking about a cash pile in Western European countries alone that is equivalent to the GDP of Switzerland, and is now urgently seeking a new home.
These low estimates take no account of the role of traditional European currencies elsewhere in the world. All through the Balkans and in much of Eastern Europe, the deutschmark has been the currency of choice for the past two decades. In Russia, the Deutschmark is the dollar's only rival. Throughout West Africa and in much of North Africa, the French franc has been the favored currency.
And if those Francs and D-Marks are not converted into something useful within the next 100 days, they risk becoming so much expensive wallpaper.
So all across Europe in this summer of the global slowdown there are booms in property prices, in antiques and works of art and jewels and luxury cars and fine wines, as people turn cash into other valuables. And by converting their money into dollars and pounds and Swiss francs, they may be protecting their own savings but they are having some strange effects on the currency markets.
The more a Belgian dentist, for example, turns his Belgian francs into dollars, the more the dollar will rise against the Belgian franc, or the euro of which it is now a part. But the more the dollar rises against the Belgian franc, the stronger the incentive for the Belgian dentist to keep on converting his weak francs into strong dollars. The process becomes self-reinforcing.
So when American and British and Swiss exporters complain that their strong dollars and pounds and francs are pricing them out of European markets, they are victims of the coming of E-Day. And when the falling profits of major exporters start to depress stock prices on Wall Street, and force manufacturers to slash their investment plans and start laying off employees, we are observing a phenomenon that might be called the E-Day recession.
Copyright 2000-2001 by United Press International.
following are some older articles on world paper money
Top Mauritius bankers resign over new banknotes row
PORT-LOUIS, Nov 21 (AFP) - The two top officials of Mauritius's central bank have resigned amid over the languages used on banknotes, it was announced Saturday.
Central bank governor Daneshwar Maraye and director-general Bud Gujudhur stepped down after thousands of people demonstrated in Port-Louis last Sunday to demand that the Tamil language keep its primacy over Hindi on new banknotes.
A communique said the resignations had been requested by Prime Minister Navin Ramgoolam.
Traditionally, the amounts on banknotes were written first in English, then in Tamil and Hindi. But the new series of rupee bills put Hindi before Tamil.
This change brought a swift reaction from Mauritians of Tamil origin, with Industry Minister Moorthy Sunassee storming: "The history of Mauritius has been deformed."
Most of Mauritius's 1.2 million inhabitants are originally from India. But within that community, the cultural differences of India's different regions remain strong.
Britain prints euro notes at a cost of 300,000 pounds
LONDON, Nov 12 (AFP) - The Bank of England on Thursday said that it was printing millions of euro banknotes, at a cost of 300,000 pounds (500,000 dollars), even though Britain will not be in the first wave of EU countries to use the single currency from its launch next year.
Britain will print seven million euro notes in five, 20 and 50 denominations, the government said. The cost will be financed by the Treasury.
Officials said that the central bank had been involved in the technical preparations for the launch of the euro.
"As part of this work, the bank has agreed to participate in a trial of the notes to be introduced in 2002 in countries joining the single currency on January 1, 1999," an official said.
The printing of euro notes here is designed to ensure consistency of paper quality and colour at different printing machines across Europe.
West Africa to issue common currency traveller's cheques
FREETOWN, Nov 30 (AFP) - Some seven million dollars' worth of traveller's cheques are to be issued in February at commercial banks in 16 west African countries, according to the West African Monetary Agency, based here.
The WAMA regulates currency transactions for the Economic Community of West African States (ECOWAS).
"It is a means towards greater economic integration and the establishment of a single currency unit in west Africa," George Osaka, head of research at the agency, told reporters at the weekend.
The traveller's cheques, known as the West African Uunit of Accounts (WAUA), are to be issued through central ECOWAS banks, with an exchange rate of 1.38 WAUA to the dollar.
"The biggest benefit is that much-needed foreign exchange will be conserved and businessmen will no longer need to use the dollar or (British pound) sterling in business transactions in the sub-region," Osaka said.
The cheques, which will show the ECOWAS logo on one side and flags of member states on the other, will be issued in denominations of five, 10, 20 and 100.
All the above articles' source: http://www.thunderstone.com/
Copyright © 1996 Thunderstone - EPI, Inc.
of adapted bank-note series by the 'Bank van de Nederlandse
When an increase in the number of counterfeited bank-notes by means of modern techniques was noticed, the 'Bank van de Nederlandse Antillen' conducted a study into the possibilities to safeguard the Netherlands Antillean bank-notes against counterfeiting by means of the latest available technological devices. This study reveals that there are modern printing techniques available, which can effectively challenge the counterfeiting of bank-notes.
Considering the above, the Bank has decided to print and issue new bank-notes that have the same design as the current bank-note series, but to which new anti-counterfeiting features (security features) have been added. For the time being, the current and new series will be in circulation side by side.
After a cost-benefit analysis of various options, it has been decided not to bring a new series with a new design into circulation, but to adapt the bank-notes to modern times and to add new security features, by applying new techniques. In addition, an adaptation will have the advantage that recognizability of the bank-notes with the public will be maintained. In the new, adapted, series, the (blue) 5-guilder bank-note and the (purple) 250-guilder bank-note will no longer be represented. The former has been replaced by the five guilder coin. The 250-guilder bank-note will not be adapted: the use of this note is too low to justify such an investment. Should it in the future become apparent that the demand for this denomination has increased, the Bank can always decide to adapt the 250-guilder bank note at that time. Until then, the 'old' 250-guilder bank note will remain normally in circulation.
Due to the adaptation, the new bank notes have -apart from the already existing security features-been geared with three, for the public clearly noticeable, security features:
An eye-catching gold-colored foil
Two strips with planchettes and
Pearly ink layer
The gold-colored foil, applied on the front-side, protects the bank-notes against reproduction by copying machines or scanners, as this gold-colored foil will turn into a black area. The planchettes (dots), which have been placed in narrow strips along the top and bottom of the rear-side, will change color (lighten up), when observed from varying angles. This change of colors will disappear on counterfeits made with copiers or scanners. In that case, the planchettes will obtain one fixed color and will no longer glisten. In addition, a pattern of pearly ink has been placed on the front-side of the bank-notes. This pattern is clearly visible when the bank-note is held in an angle to the light, but will disappear if it is a color copy or a laser print.
Apart from these new security features, the adapted bank-notes do of course also posses the security features of the current series. These features, the watermark, the 'see-through-window', the black and luminescent fibers, the tactile ink and the small, yet readable letters, are still important elements of the protection against counterfeits.
All security features of the adapted bank-note series are presented and explained in a special brochure, which, as of today, is available at the 'Bank van de Nederlandse Antillen' and all local commercial banks.
10 guilders bank note - 25 guilders bank note - 50 guilders bank note - 100 guilders bank note
Willemstad, June 5, 1998
BANK VAN DE NEDERLANDSE ANTILLEN
Information source: http://centralbank.an/sitemap/main.htm
Thomas de la Rue, 8 others
bag currency printing bid
Anirban Nag & Raghu Mohan
MUMBAI, May 7: The Reserve Bank of India (RBI) has awarded the contract to print 3.6 billion currency notes worth Rs 340 crore to nine foreign companies.
This is for the first time that the central bank is importing currency notes through a global tender. Bids had been invited for 2 billion 100 rupee notes and 1.6 billion 500 rupee notes in December last.
"With the import of the currency notes, the country's needs will be taken care of till 1998-end, when two new presses at Salboni and Mysore will become fully operational," Reserve Bank deputy governor RV Gupta said.
The first tranche of imported notes will be released into the system in July.
The apex bank has awarded the contract for 100 rupee notes to a consortium of three companies of the United Kingdom, Thomas de la Rue, Desden Seck Printing Works (a subsidiary of the Bank of England) and Harrison & Sons.
Two companies, Amercian Bank Note Company of the United States and Bundesdruckrei of Germany, have also been awarded the contract.
A consortium consisting of Geisecke and Devrient, Charles Francois Oberthur of France and BA Banknote of Canada along with Canadian Bank Note Company have been awarded the contract to manufacture 1.6 billion pieces of Rs 500 denomination.
It will cost Reserve Bank a little over Rs 340 crore, inclusive of insurance cost and freight (CIF). The cost of import will be marginally cheaper than producing the notes domestically.
According to Gupta, the two new printing presses, being set up at Salboni in West Bengal and Mysore at a cost of Rs 1,650 crore, will produce 5,000 million pieces each per annum. The two security press units at Nashik and Dewas, which are being modernised, print 4,000 million pieces.
In the first phase, the Mysore press is scheduled to produce 250 million pieces of Rs 100 notes and Salboni 700 million pieces of Rs 10 notes.
On floating the global note printing tender, the central bank had received bids from three main consortia, the German G&D consisting of CFO of France and BABN of Canada, the UK team of Thomas De La Rue, Desden Seck Printing Works, Harrison & Sons and the third consortium comprising Bundesdruckerei of Germany, South African Reserve Bank and Bank of Ukraine.
Independent bidders were Nichmen Corporation, Tumbabruk of Finland, Canadian Bank Note and American Bank Note.
The Reserve Bank had earlier rejected the bids of Nichimen Corporation and Tubabruk of Finland for violating tender norms. Nichimen Corporation had purchased the tender documents in its name, but submitted a bid on behalf of Spanish Printing works. The apex bank rejected the bid of Tumbabruk because it insisted that Reserve Bank of India supply the bank note paper for printing the notes.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
Information source: http://www.indian-express.com
What African paper money collectors should know
Ali A. Mazrui, the director of the Institute of Global Cultural Studies at the State University of New York at Binghamton, predicts that West Africa--indeed, the whole continent--is on the verge of large-scale border upheaval. Mazrui writes, "In the 21st century France will be withdrawing from West Africa as she gets increasingly involved in the affairs [of Europe]. France's West African sphere of influence will be filled by Nigeria--a more natural hegemonic power. . . . It will be under those circumstances that Nigeria's own boundaries are likely to expand to incorporate the Republic of Niger (the Hausa link), the Republic of Benin (the Yoruba link) and conceivably Cameroon."
The future could be more tumultuous, and bloodier, than Mazrui dares to say. France will withdraw from former colonies like Benin, Togo, Niger, and the Ivory Coast, where it has been propping up local currencies. It will do so not only because its attention will be diverted to new challenges in Europe and Russia but also because younger French officials lack the older generation's emotional ties to the ex-colonies. However, even as Nigeria attempts to expand, it, too, is likely to split into several pieces. The State Department's Bureau of Intelligence and Research recently made the following points in an analysis of Nigeria: "Prospects for a transition to civilian rule and democratization are slim. . . . The repressive apparatus of the state security service . . . will be difficult for any future civilian government to control. . . . The country is becoming increasingly ungovernable. . . . Ethnic and regional splits are deepening, a situation made worse by an increase in the number of states from 19 to 30 and a doubling in the number of local governing authorities; religious cleavages are more serious; Muslim fundamentalism and evangelical Christian militancy are on the rise; and northern Muslim anxiety over southern [Christian] control of the economy is intense . . . the will to keep Nigeria together is now very weak."
Given that oil-rich Nigeria is a bellwether for the region--its population of roughly 90 million equals the populations of all the other West African states combined--it is apparent that Africa faces cataclysms that could make the Ethiopian and Somalian famines pale in comparison. This is especially so because Nigeria's population, including that of its largest city, Lagos, whose crime, pollution, and overcrowding make it the cliche par excellence of Third World urban dysfunction, is set to double during the next twenty-five years, while the country continues to deplete its natural resources.
Part of West Africa's quandary is that although its population belts are horizontal, with habitation densities increasing as one travels south away from the Sahara and toward the tropical abundance of the Atlantic littoral, the borders erected by European colonialists are vertical, and therefore at cross-purposes with demography and topography. Satellite photos depict the same reality I experienced in the bush taxi: the Lome-Abidjan coastal corridor--indeed, the entire stretch of coast from Abidjan eastward to Lagos--is one burgeoning megalopolis that by any rational economic and geographical standard should constitute a single sovereignty, rather than the five (the Ivory Coast, Ghana, Togo, Benin, and Nigeria) into which it is currently divided.
Copyright © 1994 by Robert
Kaplan. All rights reserved. The Atlantic Monthly; February 1994;
The Coming Anarchy; Volume 273, No. 2; pages 44-76