The Role of Cash Cycle Analytics When Considering Banknote Durability

Banknote durability is an ongoing topic of interest for central banks. More durable banknotes have a reduced impact on the environment and save the central bank money because they need replacing less often. They also tend to look better in circulation for longer, which is frequently associated with lower processing costs; if a banknote is fit for circulation it will get re-issued into circulation instead of being sent back to the central bank for assessment and destruction.

When central banks want more durable banknotes they often focus on the banknote specification. Central banks will move to polymer or add varnish onto their paper banknotes. These approaches are well proven to increase banknote lifetimes. However there are also other factors that impact banknote lifetimes.