Bank of England Annual Report – Banknotes Increase, Counterfeits Fall

The week before the issue of the new £50, the Bank of England published its annual report for 2020/21, which showed an increase in notes in circulation of £10.3 billion (14%). It credited this increase to the launch of the new polymer £20 note in February 2020 and the pandemic. These figures are quite a contrast to the Reserve Bank of India’s annual report, also issued recently, which saw a 7.2% increase (click here for the article).

The volume of notes in circulation increased by 14.6% to 4.54 billion notes. The main growth was the £20 (20% to 2.2 billion), followed by the £10 (15% to 1.5 billion).

The report also touched on two projects undertaken by the Issue department this year. The transition of the £50 note to polymer, completing the series on polymer, and work on an end-state model for wholesale cash in the UK with the industry wholesale distribution steering group. This work ties in with the National Audit Office report of September 2020 and the Bank’s commitment ‘to supporting cash as a viable means of payment for as long as the public wants to use it.’