Articles by Central Banking staff
G+D dominates central bank note sorting
Giesecke+Devriant’s BPS M7 machine is very widely used among central banks
Nearly half of central banks have access to cash policy
High income countries slightly more likely to maintain access to cash policies
Smaller banknote denominations have shorter lifespan
High income central banks produce longer-lasting cash
Middle income central banks see largest volume of counterfeit notes
Foil remains least used security feature for banknote production
Majority of central banks have emergency cash inventory
But few respondents say they have alternative strategies in place
Half of central banks recycle banknotes as sustainability measure
Most currency operations lack climate strategy, but a few plan to launch one
Minority of central banks keep whole cash cycle in-house
Banknote printing remains central banks’ most outsourced function
Currency staff make up 8% of central bank workforce
Institutions with own printworks have larger currency departments
Raised tactile features are most common banknote visual aid
Assistive mobile application offered by just two central banks
Polymer substrates used on one-fifth of banknotes
Data reveals widening adoption in upper-middle income jurisdictions
Average volume of defective banknotes remains above 100m units
Central banks retrieved over $1 billion of mutilated banknotes on average
Cash payments average over 30% of transactions in 2023
No pressures on number of printed banknotes, central banks say
Half of upper-middle income banks plan banknote issue in next year
Total number of banknote denominations in circulation averages under 10
Currency Benchmarks 2024 Charts
Take a deep dive into the Currency Benchmarks charts, which have just been released for 2024.
Average cash values rise more than volumes year on year
Value of banknote pieces in circulation rises by over 30% on average
Handful of central banks expanded swap lines in past year
Vast majority of swap lines offer US dollar liquidity
One in 10 central banks uses FX swaps to defend currency
Interventions were relatively common in past year, suggesting greater activity in spot market
Middle income countries form largest membership of World Bank Ramp
Central banks highlight market intel, support, training as partnership gains
Half of middle income central banks intervened in FX markets in 2023
Liquidity tranches form largest part of reserves in lower-middle income countries
Risk departments propose benchmarks at most central banks
Investment committees increasingly empowered to approve reserve benchmarks
Most high income central banks engage in securities lending
But liquidity stress-testing tends to be common practice across middle income institutions
Large reserve holders use external managers for intel and new assets
Staff training trumps new asset class adoption as overall goal for third parties’ engagement
Asset delegation to external managers averages just 12%
One in 10 central banks considering reviews of allocations to external managers
Central banks split over impact of US sanctions on dollar reserves
De-dollarisation, if it happens, will be very slow, central banks say