Central Banks and Cash Round-Up

In this, the latest in our monthly summary of central bank annual reports, we look at Thailand, India, Peru, Tunisia, Timor-Leste, Ukraine and Hong Kong.

Bank of Thailand (BOT)

In 2022 the number of banknotes in circulation in Thailand rose by 2% compared with a CAGR of 5% since 2012.

Thailand is seeing a very significant adoption of digital payments. The BOT 2022 Annual Report says it has concluded that the role of banknotes as a medium of exchange is gradually diminishing, while the store of value function is increasing. The report details four changes that it is making in response.

• Printworks: the vision for Thailand’s printworks has moved from being world-class at the production and management of banknotes to being the world’s leading country at this, whilst its mission has changed to focus on ‘sufficiency in all situations, in accordance with other payment systems in the future, for the public’s confidence and satisfaction.’ 

• Stock management: up until now the BOT established the lead time from re-order to supply and established a minimum stock holding commensurate with the reorder point. This was reviewed annually. Since July 2022 a ‘safety stock’ level has been set which will cope with fluctuations in banknote demand consistent with all events that may occur, bearing in mind the costs of production and distribution.