HIGHLIGHTS

Here are some of the highlights since January 19.

India – why cash is still in demand

Ganga Narayan Rath reports in the Hindu Business Line that currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More in circulation grew by 74% between March 2018 and March 2022. Currency in circulation increased from 12% of GDP in 2012-2013 to 13.7% in 2021-2022.

«What is baffling about the huge demand for cashMoney in physical form such as banknotes and coins. More is that it persists and grows despite proliferation of alternative paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More mechanisms.» writes the former central banker. According to the 2020 McKinsey Payments Report 89% of all transactions in volume were settled in cash. Other research indicates that 65% of e-commerce transactions are paid by cash on delivery.

«Paper currencyThis is often used as a generic expression to refer to banknotes, versus the “metal currency” expression, which refers to coins. More has many virtues: preserving privacy, dealing with power and network outages and other emergencies, security from cybercrime, providing a medium of exchangeThe Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More for unbanked low-income individuals and achieving real-time clearing of transactions. There is still no fully satisfactory substitute for cash,» concludes Ganga Narayan Rath

South Korea supplies 3.4 bln USD banknotes ahead of the Lunar New Year’s holiday.

South Korea’s central bank has supplied 4.2 trillion won (3.4 billion U.S. dollars) worth of fresh banknotes to meet cash demand ahead of the Lunar New Year’s holiday, according to Macaubusiness.com. In South Korea, elders traditionally offer cash gifts to younger generations as a token of good wishes and better luck.

Philippines: Euronet Acquires 500 ATMs from the Bank of the Philippine Islands.

Euronet Worldwide Inc., a leading global independent ATM deployer, acquired 500 non-branch automated teller machines from the Bank of the Philippine Islands, reports the Manila Standard. “The diversification of our ATM network outside of Europe where we already have a strong presence is an important element of our growth strategy,” said Euronet chairman and chief executive Michael Brown.

Mexico to replace 20 peso note with a 20 peso coin

The Bank of Mexico (Banxico) announced that in 2025 the 20-peso banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More will be replaced by a coinA coin is a small, flat, round piece of metal alloy (or combination of metals) used primarily as legal tender. Issued by government, they are standardised in weight and composition and are produced at ‘mints’. More, writes Vallartadaily. Production of the denominationEach individual value in a series of banknotes or coins. More will cease in 2023.

The decision to opt for the 20-peso coin is because coins have a longer lifespan than banknotes and are easier to transport and store without damage.

The 20-peso bill won the award for the Best New Commemorative Bill in Latin America, awarded by Reconnaissance International at the High-Security Printing Conference.

ELSEWHERE ON THE WEB

Here’s what’s new on all things cash and money curated on the web since January 19.

JANUARY 19–25, 2023

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