New Developments in Banknote and Currency Developments in Banknote and Currency Management ... and Former Director, Banknotes, ... • New Developments in Banknote and Currency Management

  • View

  • Download

Embed Size (px)

Text of New Developments in Banknote and Currency Developments in Banknote and Currency Management ... and...


    Since 1999, Central Banking Publications has organised annual residential training courses/seminars which have been attended by more than 4,500 central bankers and supervisors from over 140 countries.

    Series Advisor Charles GoodhartProfessor EmeritusLondon School of EconomicsFinancial Markets Group

    April 28 May 1 2015, Cumberland Lodge, Windsor UK

    New Developments in Banknote and Currency Management

    Course Chairman Antti HeinonenChairman of Banknote Ethics Initiative and Former Director, Banknotes, European Central Bank

  • Dear Delegate,Seeing peoples initial reactions to the new banknote designs is a heartening reminder of what an important role currency plays in our lives, and what a sense of pride and heritage our notes evoke.

    Geoff Bascand, Deputy Governor and Head of Operations, Reserve Bank of New Zealand, November 2014

    Banknotes remain the element of central banking that most readily engages the public.

    Despite advances in payment technologies and the much-vaunted rise of virtual currencies, the number of banknotes in circulation continues to increase, year on year.

    Currency is here to stay.

    Yet, balancing this increasing demand with requirements, such as cost optimisation and the growing trend for stakeholder engagement, requires new technologies, new skillsets and new ways of thinking. And stretches existing resources.

    This course, New Developments in Banknote and Currency Management is designed to equip central bankers to meet these challenges whilst examining methodological approaches to the common problems faced by central banks.

    The four-day programme of interactive roundtable seminars and workshops offers practical examples of currency management, as well as questions of organisation and resourcing the function.

    The panel of expert speakers combines practical central banking experience and expertise in the technical aspects as well as views from private sector experts.

    All discussions are held in roundtable format to encourage participants to share their experiences and debate the pressing issues in their field.

    This format, as more than 4,500 central bankers and regulators can attest, encourages delegates to quiz panellists, raise issues and discuss solutions to the specific challenges they face.

    We look forward to welcoming you to Windsor on April 28.

    Yours sincerely,

    Robert Pringle, ChairmanCentral Banking Publications

    The seminar is very useful Dian Karmila, Head of Operational Currency Management, Bank Indonesia

    Key sessions focus on: Banknote series design Substrate choice and

    features Engaging stakeholders in

    anti-counterfeiting Working effectively with

    external suppliers Increased efficiencies in

    sorting and circulation

    Key speakers include: Richard Wall, Head,

    Currency Department, Bank of Canada

    Trond Eklund, Director, Cashiers Department, Norges Bank

    David Andolfatto, Vice President, Federal Reserve Bank of St. Louis

    Georges Chalhoub, Controller, Cash Operations Department, Central Bank of Lebanon

    Barnabas Ferenczi, Director, Giesecke & Devrient and former Director of Cash Logistics, Central Bank of Hungary

  • Thursday 18 April

    Targeting Right Practice

    New Developments in Banknote and Currency Management

    New challenges in the currency life-cycle Antti Heinonen, Chairman of Banknote Ethics Initiative, and former Director, Banknotes, European Central BankThis opening session, led by the chairman, will consider the changing demands facing banknote and currency managers, from new developments in design and production, to circulation and disposal. Particular areas for discussion will include the breadth and depth of private-sector involvement in the banknote life-cycle, trends in substrate choice, features and banknote life expectancy, heightened demands for improved productivity and efficiency, and emerging threats from counterfeiters. Delegates will be encouraged to identify specific areas they would like discussion to address during the seminar and the group will look to set the theme for the week.

    Currency management: a risk assessment Alex Jarvis, Former General Manager, Printing Works, Sorting and Cash Centres, Bank of EnglandWhat risks do central banks face in currency management? Who identifies these? How are they measured and how are they managed? By its very nature, currency management brings with it potentially high risks. However, the changing nature of the business has created a complex chain with a number of moving parts, cutting across different industries, disciplines and an expanding universe of external suppliers. On top of this, currency provision remains the most important touch point for a central bank with its public and therefore plays a key role in the reputation and public perception of the central bank. This session will draw on the experience of the group to draw out the risks facing currency managers and consider how best these can be managed.

    Extending banknotes average life Vijay Singh Shekhawat, General Manager, Issue Department, Reserve Bank Of IndiaThe longer a note lasts, the more value a central bank will obtain from a given note order. Given the size of the orders, even a small improvement in percentage terms can mean a substantial improvement in the bottom line for the central bank, from printing costs through to environmental impact. Besides the substrate decision, there are other methods central banks can utilise to extend the lifespan of notes such as the improving of security features and water marks, mechanical properties of varnish and printing techniques. This session will examine recent work in the field to extend the average life of notes across different jurisdictions such as improvements to durability and security, with the ensuing discussions highlighting lessons that other central banks can take from this experience. The speaker will also invite delegates to share any issues surrounding the life-span of notes in circulation within their jurisdictions.

    Tuesday 28 April

    Risks and Challenges across the Banknote Life-Cycle

    New Developments in Banknote and Currency Management

    About the course chair:Antti Heinonen has been the Chairman of Banknote Ethics Initiative since its inception in spring 2013. The initiative was established to provide ethical business practice. He was the Director, Banknotes at the European Central Bank (ECB) in Frankfurt from 1998 until 2008, the Chairman of the Central Bank Counterfeit Deterrence Group (CBCDG) between 2008 and 2012, and prior to joining the ECB, the chief cashier for the Bank of Finland. He chaired the Banknote Committee (BANCO) of the European System of Central Banks between July 1998 and November 2008 and was also the Chairman of the Eurosystem Cash Changeover Co-ordination Committee, which had the overall responsibility for the co-ordination of the euro cash changeover in 2002. He holds degrees in economics and mathematics from the University of Helsinki.

  • Wednesday 29 April

    Banknotes: from Sourcing to Circulation

    Windsor, 2015

    Substrate choice: security, acceptability, economy and longevityRichard Wall, Head, Currency Department, Bank of CanadaThe question of what sort of substrate to use is not a new one. This session will take a fresh look at the question, considering the variety of options available. In particular, the speaker will recount the experience of the Bank of Canada which has completed the change of their notes from paper to polymer. Discussion will focus on the calculus involved, and the practicalities and sensitivities, including environmental ones that a central bank should take into consideration.

    Banknote series design: security features in focusTrond Eklund, Director, Cashiers Department, Norges BankFor currency managers, note design brings together the full range of constituencies and stakeholders that they interact with. New designs must win public and political acceptance, and meet durability, machine processing and environmental standards, and importantly incorporate security features. In this session, the speaker will draw on recent work at the Norges Bank through the design of the new banknote series and discussion will focus on the integration of security features in the design of the banknote.

    Anti-counterfeiting strategy: strategy and educating stakeholdersJohn Kendall, Manager, Banknote Education Team, Bank of England (invited)Gaining and maintaining public confidence in the currency is a key role of the Bank of England and one which is essential to the proper functioning of the economy. Today, advances in image-reproduction technology and the development of security features are recurring themes in the arms race with counterfeiters. In this session, the speaker will discuss the practicalities faced in designing and issuing new notes, touching upon the public consultation launch by the Bank of England and the importance of engaging stakeholders in the art of anti-counterfeiting, with a particular focus on the communication strategy employed for professional cash handlers.

    Tendering and procurement from external suppliers: the clients expectations and needsGeorges Chalhoub, Controller, Cash Operations Department, Central Bank of Lebanon and John Winchcombe, Line of Business Director, De La Rue CurrencyProcurement from external suppliers is expensive, complex and may span several years. Currency managers must weigh up the importance of price against considerations such as time of delivery, quantity of order and quality of product. At the same time, external suppliers must set out clear expectations of their clients needs and ensure that the procurement proposal matches their capabilities and ethical requirements.