Central Banks and Cash Round-Up

Further to the coverage in the August issue of the cash information contained in the latest annual reports of central banks in Europe, this month we take a look at some from Africa and the Middle East.

Bank of Botswana (BOB)

Clean Note Policy: during 2022, the BOB adopted stringent sorting levels (from medium to high), ensuring that only clean banknotes were in circulation in line with its Clean Banknotes and Coin Policy. Moreover, it withdrew from circulation coins amounting to P44.7 million, representing 32.6% of the total coins in circulation as of 1 November 2021, when the exercise began.

Banknotes: the number of banknotes decreased by 7.6% from 43.5 million in December 2021 to 43.2 million in December 2022 (December 2020, it was 49.6 million). Consequently, the total value of banknotes in circulation decreased from P4.2 billion to P4.1 billion during the same period.

The net issuance of the P200, P100 and P50 banknote denominations fell by 2.7%, 4.9% and 3.5%, respectively, in 2022, indicating that the public is increasingly using other means of payment.

Coins: the net issuance of coin denominations increased by 10.7% to 338 million in 2022. The value of coins in circulation increased marginally by 1.3% to P135.3 million.

Bank Al-Maghrib (BAM)

Currency in Circulation: following a 6% increase in 2021, cash in circulation increased by 10% in 2022 to reach 372 billion dirhams. Of this, banknotes rose 9.3% to 2.5 billion, equivalent to 368 billion dirhams, while coins increased by 3.1% to 3.1 billion, equivalent to 4 billion dirhams.

Notes and coins in circulation remained dominated by the 200 dirham denomination note, with a 56% share, and the 1 dirham coin, with a 29% share.

BAM produced 530 million banknotes and 95 million coins in 2022. Meanwhile, to meet the growing demand for cash, BAM and the Private Sorting Centers (PSC) increased their supply of banknotes and coins by 13.5% to 3.5 billion, including 2.9 billion from recycling operations.

In 2022, it issued two gold and two silver commemorative coins.

Counterfeiting: Counterfeiting continued its downward trend, declining to 2.9 counterfeits for every million banknotes in circulation, compared with 3.3 in 2021. The number of counterfeit banknotes detected amounted to 7,090, worth 960,000 dirhams, with the 200 dirham denomination accounting for 52% of the total.

Some of the actions that form part of the Bank’s strategic plan for 2019-2024, as they relate to currency, included:

The adoption of new methods of packaging Moroccan banknotes, strengthening the cash cycle logistics infrastructure and modernising the associated information system
Strengthening the cash control system
Stamping of a commemorative coin to mark the 20th anniversary of Bank Al- Maghrib Museum
Conclusion of an agreement for the integration and use of CDS (Counterfeit Detection System) technology in Moroccan banknotes
Strengthening the knowledge management and industrial expertise of Dar As-Sikkah (its currency and security printing subsidiary).

Central Bank of Nigeria (CBN)

After a number of years of strong growth, the face value of naira banknotes in circulation has started to fall. With no change in coins in circulation and the eNaira still at a low level, cash in circulation (CIC) has also stabilised.

The CBN’s Consolidated and Separate Financial Statement for 2022 reported a marginal reduction in the face value of banknotes in circulation and no change in coins. The eNaira increased significantly, albeit from a low base.

The total value of cash in circulation increased 2019 to 2020 by 19% and between 2020 and 2021 by 14%.

Nigeria Security Printing and Minting (NSPM), which produces Nigeria’s notes and coins, increased its revenues by 16.5% to N 66.8 billion. Inventory at NSPM rose 16.6% to N 40 billion.

Currency issue expenses increased by 95% between 2019 and 2022.

Central Bank of Kenya (CBK)

Currency in circulation increased by 3.5%, or KSh 10.6 billion, to KSh 316 billion (coins were up 4.14% to KSh 10.5 billion and banknotes up 3.16% to KSh 305 billion) compared to the rise of 10.2% in the previous financial year.

The net increase was attributed to higher currency outflows (withdrawals) compared to the net inflows (deposits). Total inflows for the year stood at KSh 544.6 billion while outflows were KSh 555.3 billion for the same period. Compared to the previous year, both the deposits and withdrawals were lower by 3.52% and 6.3% respectively.

Central Bank of the Republic of Turkey (CBRT)

Banknotes: as of end 2022, the number of banknotes in circulation increased by 24% to 3.5 billion pieces. The value in circulation rose by 45%. Each year over the last 10 years the volume of banknotes has, on average, increased by 12%.

Two denominations, the TRY 100 and TRY 200, account for 60.4% of the volume in circulation. The TRY 200 accounts for 56.6% and the TRY100 34.4% of the value in circulation.

The cost of banknote production rose 11% from TRY 338.3 million to TRY 398 million.

Circulation: CBRT has 21 branches around Turkey. In the 16 provinces where it does not have branches, it has depots. In addition, it has 35 decentralised cash management depots, MONY, which handle banknote customer and processing. CBRT opened six new MONY depots in 2022. CBRT also has two cash centres.

These assets concluded TRY 2.9 trillion transactions in total, TRY 1.4 trillion of collections and TRY 1.5 trillion payments.

Coin circulation: new Consignment Coin Depots (CCDs) were established in 11 provinces working with the Post & Telegraph Corporation. 75.5% of coin transactions worth TRY 1.15 billion were carried out in 13 CCDs.