News in Brief

SBP Sets Fitness and Authentication Standards

The State Bank of Pakistan (SBP) is seeking to standardise the parameters used by banknote sorting machines to ensure uniform fitness standards across the different models and makes of equipment being used.

SBP originally issued a circular in September 2014, FD Circular No.1/2014, which provided machine fitness and authentication sorting parameters to banks, establishing minimum standards for their machine sorting. It has now issued a new circular intended to streamline the sorting process and maintain consistency in results for high-end Banknote Processing and Authentication Systems (BPAS), Desktop Note Sorting (DNS), and Countertop Note Sorting (CNS).

The first phase has been to implement these standards at SBP’s premises and all of its field offices. In the second phase SBP, in collaboration with banks, has calibrated banknote processing machines deployed in Karachi. Readings for each make and model have been set so that banks can now calibrate all their machines at their cash processing centres and branches. This has to be completed by 31 December 2023.

Not all banknote processing machines could be tested due to the incompatibility of their firmware. Banks with these machines must make them available for calibration within six months. If they do not, those machines will not be approved for banknote processing.

Bulgaria’s Euro Coin Designs Approved

The Coordination Council, set up to coordinate Bulgaria’s preparation for Eurozone membership, has adopted the proposed coin designs approved by the Bulgarian National Bank earlier this year. The new coins will feature the same images as those present on the existing stotinka and lev coins, to ensure continuity and facilitate recognition of the new currency.

Now that the designs have been approved by the Coordination Council, they will be presented to the Council of the European Union, the European Commission, and the member states of the eurozone for final agreement.

Bulgaria’s entry to the eurozone has been delayed, with adoption of the single currency now likely to occur in January 2025. An MOU signed last year does, however, enable the country to begin preparatory tasks for coin production, including the minting of a nominal amount of test coins to check quality and ensure certification from the Bulgarian Mint.

Actual production of the circulating coins is dependent upon the decision of the Council of the European Union on Bulgaria’s adoption of the euro.

Nominations for IACA Awards Now Open

The International Association of Currency Affairs (IACA) has now opened nominations for the 2024 Excellence in Currency Technology Awards, the winners of which will be announced at the 2024 Banknote Conference next May.

There are four categories:

• Best New Banknote Feature, Product or Process

• Best New Limited Circulation/ Commemorative Banknote

• Best New House Note

• Best New Cash Cycle Innovation. 

The eligibility period is from 1 October 2021 to 31 January 2024, and all projects must have been issued or completed during this period.

The deadline is 5 February 2024, and nominations must be submitted though IACA’s awards platform: https:// currencyaffairs.awardsplatform.com/.

No Change to IoM Small Change

The Isle of Man (IoM) Treasury has announced that it will not remove low denomination coins from circulation, following a consultation earlier this year around their usage. The consultation covered proposals to remove the 1p, 2p and 5p coins and introduce an island- wide rounding system whereby cash transactions would be rounded up or down to the nearest 10p.

The perceived inflationary effect of withdrawing these coins and rounding was ranked as the key concern, with the perceived effect on donations to charity the next most important concern. Other concerns included the withdrawal acting as an ‘unwanted nudge’ in the direction of a cashless society, including privacy infringements, and discrimination against the poor, the vulnerable, and those who prefer to use cash.

Despite its decision, the Treasury has stated that it ‘maintains its concern at the continuing cost of retaining low value coins’. It will continue its policy of not minting new Manx 1p and 2p coins, and in the event of coin stocks running low, will encourage businesses and customers to round transactions ‘on a voluntary basis’.

Falklands Consults on Notes and Coins

The Falkland Islands Treasury Department has launched two consultations concerning changes to the archipelago’s currency, asking the public to provide its feedback on the proposals.

The first involves the redesign of the Falkland Islands banknotes, with respondents asked to suggest themes for an updated series. The second, features a proposal to withdraw low value coins from circulation, the 1p and 2p.

The Treasury held a public meeting in the capital, Stanley, regarding the process for the coin withdrawal consultation. It noted that the findings of the consultation, which closes 17 December, will help inform its decision on whether to remove the lowest denomination coins from circulation.

The Falkland Island pound is issued on a par with UK sterling and both currencies circulate on the islands. The design of the currency hasn’t changed since the early 1980s.

Uganda Cautions Against Currency Misuse

With recent festive trends including fashioning bouquets out of new banknotes, the Bank of Uganda has issued a statement cautioning the public against such practices, noting that they destroy note utility, making them unusable in cash processing and distribution equipment such as cash counting machines and ATMs.

The practice also leads to the premature removal and replacement of banknotes at an avoidable cost to the public.

Of particular concern is the use the of glue, sellotape, pins, clips, and other adhesives or fasteners to stick together the banknotes for so-called floral bouquets, which are becoming increasingly popular for various social events and gifting ceremonies.

The Bank is urging people to do away with the banknote bouquets and give gifts of just the banknotes themselves, which can then be used in transactions.