Update on the Global Demand for Banknotes

This series of periodic global updates, which started in 2017, have mainly focused on the development of the growth rates of the value and volume of banknotes in circulation. Furthermore, they have addressed some interesting phenomena around banknote demand. This latest update will follow this customary agenda.

The update will start with an analysis of the development of banknote circulation in value terms during recent years, followed by that in volume terms. Indicators since 2013 are also examined. In addition, the study initiated in the August edition of Currency News™ will be continued.

In that issue, the use of coins versus durable note substrates in replacing low-end paper notes was analysed. It was concluded that the note/coin boundary is not changing as often as in the past, because durable note substrates are increasingly used to replace low-end paper notes instead of new high-end coins.

In this article the focus shifts from the low to the high end of the currency structure, with the impact of digital payments on the introduction of new high-end notes analysed.