Executive Summary
The Asia-Pacific banknote market is undergoing a significant transformation and growth phase, driven by shifting consumer preferences, technological innovations, and a growing working-age population. The region plays a crucial role in the global banknote market, with rapid economic development and urbanization observed in several countries. Despite the rise of digital payments, many Asia-Pacific countries maintain a strong demand for banknotes due to cultural preferences, cash-based economies, and a sizable unbanked population. Growth in the Asia-Pacific banknote market is further supported by increasing disposable incomes, tourism, and government efforts to modernize currency systems. The market presents attractive opportunities for industry players and investors, with a promising outlook for continued expansion.
APAC Banknote Market Key Insights
Australia Banknotes: The COVID-19 pandemic significantly affected the demand for banknotes in 2020 and 2021. While there was a persistently high demand for AUD 50 and AUD 100 banknotes, digital payments steadily rose. This trend aligns with the declining usage of cash for transactions.
New Zealand Banknotes: Since 2015, the Reserve Bank has progressively introduced updated banknotes alongside the existing ones, featuring refreshed designs. A significant milestone occurred in 1999 when New Zealand banknotes shifted from paper to polymer material, enhancing their resilience and longevity significantly.
Currency Trends in Fiji: As of July 31, 2023, the total currency in circulation in Fiji amounted to FJD 1,015.8 million, indicating a rise from FJD 973.4 million registered a year prior.
India Currency in Circulation: The value and quantity of banknotes in circulation rose by 7.8% and 4.4%, respectively, in 2022-23, compared to 9.9% and 5.0%, in 2021-22.
Japan Banknotes: In comparison to other developed nations, Japan maintains a relatively high amount of cash in circulation relative to its Gross Domestic Product (GDP). The cash-to-GDP ratio in Japan exceeds 20%, while the United States has a ratio of 8%, and the Euro area stands at 11%.
Laos Currency: Laos operates primarily as a cash economy, indicating that cash is the prevailing and favoured method of payment within the country. The devaluation of the LAK against the US Dollar has also impacted the expansion of the money supply (M2) denominated in the Lao Kip.
Singapore Dollar Performance: Throughout 2023, the Singapore dollar showcased robust performance among Asian currencies, largely attributed to tight monetary policy and a depreciating US dollar.
Issuance of New Banknotes Series in Pakistan: On January 30, 2024, the State Bank of Pakistan announced its initiation of the process to design and issue a New Banknotes Series encompassing all existing denominations.
Bangladesh Bank Release Clean Notes on July 25, 2023: On July 25, 2023, Bangladesh Bank introduced clean notes to the market after removing damaged, torn, burnt, damp, rusty, heavily inked, heavily written, signed, and fragmented ones.
Oceania and Asia Regions:
The banknote market in Oceania and Asia has witnessed significant developments, fueled by economic growth and technological advancements.
Digitization has revolutionized the banking sector, leading to increased transparency and security features in banknotes.
Challenges such as counterfeit banknotes persist, highlighting the need for continuous innovation in currency security.
Each country in the region faces unique opportunities and challenges in the digital era, presenting a dynamic landscape for the banknote market.
Production of Banknotes
The report delves deep to assess production facts of banknotes in different geographies. Production facts comprises of volume of banknotes, banknotes production by value, and banknotes printing cost. Additionally, banknotes production by denomination has also been discusses in the report.
Circulation of Banknotes:
Circulation of banknotes has been discussed for all countries covered in the research report. To study circulation of banknotes, we have identified circulation of banknotes by volume and value including by denominations.
Scope of Work
Makreo Research has recently published an extensive study titled "Asia-Pacific Banknote Market Performance (2018-2023): Currency Dynamics, Production Trends, Counterfeit Prevention, Polymer Adoption“. This study meticulously examines the production and circulation of banknotes, analysing both volume and value metrics, while providing a detailed assessment of key macroeconomic and industry drivers. The rising adoption of digital currency has notably influenced banknote demand, leading to a comprehensive analysis comparing digital payment adoption with traditional currency usage. The report maintains a balance between qualitative and quantitative factors, incorporating macroeconomic analyses and sector assessments. In summary, this report serves as a valuable resource for comprehending the past performance and expected future trends of the banknote industry amidst evolving variables.
The research study assesses key Asia-Pacific countries to provide the understanding of banknote production and supply dynamics of Asia-Pacific region. Furthermore, it delves into the historical performance of the industry along with current situation of the market, considering factors closely associated with the banknote sector. The report also addresses crucial subjects including currency production and circulation, polymer banknotes, the incidence of counterfeit banknotes, analysis of production costs, and counterfeit detection.
How is the global banknote market is performing?
What is the regional breakup of banknotes adoption worldwide and Asia’s placement in the global market?
What are the most traded currencies worldwide?
What is banknote market scenario of major Oceania countries?
What is the currency production volume of the various Asia-Pacific countries?
What is the key facts about banknotes in the major Asia-Pacific countries covered ?
What is the banknotes printing cost in various Asia-Pacific countries?
What is the total currency in circulation in each major Asia-Pacific Countries and what is the value by different banknote denominations?
What is the scenario of counterfeit banknotes detection in the region?
What all Asian countries adopted Polymer banknotes?
1.1. Market Definition
1.2. Objective of the Study
1.3. Research Process
1.4. Data Collection Methods
1.5. Analytical Framework
2.1. Global Banknotes Market Performance
2.2. Asia-Pacific Positioning in Global Banknotes Market
2.3. Global Currency Performance & Impact of COVID-19
2.4. Regional Break-up of Polymer Banknotes
2.5. Countries Using Polymer Banknotes
3.1. Australia Banknotes Key Facts
3.1.1. Australia Banknotes Production
3.1.2. Australia Banknotes Production by Denomination
3.1.3. Australia Banknotes in Circulation
3.1.4. Australia Counterfeit Banknotes
3.1.5. Australia Banknotes Cash Dominance vs Digital Payment Adoption
3.1.6. Australia Banknotes in Wallet
3.1.7. Australia Banknotes Cash Payments
3.1.8. Economic Crisis and Australian Banknotes in Circulation
3.4. New Zealand Banknotes Key Facts
3.4.1. New Zealand Banknotes in Circulation
3.4.1.1. New Zealand Banknotes in Circulation by Denomination
3.4.2. New Zealand Currency Interest Rate
3.4.3. New Zealand Counterfeit Banknotes
3.5. Fiji Banknotes Key Facts
3.5.1. Fiji Banknotes in Circulation
4.1. India Banknotes Key Facts
4.1.1. India Banknotes Production
4.1.2. India Banknotes Circulation
4.1.2.1. India Banknotes Circulation by Denomination
4.1.3. India Banknotes Indent and Supply
4.1.4. India Polymer Banknotes Key Facts
4.1.5. India Counterfeit Banknotes
4.2. Japan Banknotes Key Facts
4.2.1. Japan Banknotes Issuance and Cost of Production
4.2.2. Japan Banknotes in Circulation
4.2.2.1. Japan Banknotes in Circulation by Denomination
4.2.3. Japan Cash Dominance vs Digital Payment Adoption
4.3. Laos Banknotes Circulation
4.4. Singapore Banknotes Key Facts
4.4.1. Singapore Banknotes Money Supply
4.4.2. Singapore Banknotes in Circulation
4.4.3. Singapore Banknotes Exchange Rates
4.5. Pakistan Banknotes Key Facts
4.5.1. Pakistan Banknotes Issued
4.5.2. Pakistan Banknotes in Circulation
4.6. Bangladesh Banknotes Key Facts
4.6.1. Bangladesh Banknotes Printing Expenditure
4.6.2. Bangladesh Banknotes Circulation
4.6.2.1. Bangladesh Banknotes Circulation by Denomination
4.7. Vietnam Banknotes Key Facts
4.7.1. Vietnam Types of Banknotes
4.7.2. Vietnam Banknotes Circulation
4.8. Indonesia Banknotes Key Facts
4.8.1. Indonesia Banknotes Production
4.8.2. Indonesia Banknotes Circulation
4.8.3. Indonesia Banknotes Counterfeiting
4.9. Philippines Banknotes Key Facts
4.9.1. Philippines Banknotes Production
4.9.2. Philippines Banknotes Circulation
4.9.3. Philippines Banknotes By Denominations
4.9.4. Philippines Polymer Banknotes
4.9.4.1. Philippines Polymer Banknotes Timeline
4.9.5. Philippines Counterfeit Banknotes
Conclusion
Limitations of the Study
Global Banknote Market Revenue - Regional Breakup (%)
Most Traded Currencies in the World
Regional Breakup of Polymer Adoption Worldwide
Australia Production of NGB Series of Banknotes, FY 2017/18 – FY 2022/23
Australia Production of NGB Series of Banknotes by Denomination, (Millions of Banknotes), FY 2016/17 – FY 2022/23
Australia Banknote in Circulation, by Volume, FY 2016/17 – FY 2022/23
Australia Banknote in Circulation, by Value, FY 2016/17 – FY 2022/23
Australia Banknotes in Circulation by Denominations (%), by value, FY 2020/21 – FY 2022/23
Australia Counterfeit Banknotes by Denominations (in Volume), FY 2022/23
Australia Counterfeit Banknotes by Denominations (in Volume), FY 2021/22
Counterfeit Banknotes in Australia by Volume, FY 2018/19 – FY 2022/23
Australia Shift from Cash Dominance to Digital Payment Adoption (%)
Australia Share of Total Number of Banknotes in Wallet (%), 2013, 2016, 2019, 2021
Australia Share of Number of in-person Payments in Each Category (%)
Australia Growth in Banknote Circulation during Periods of Economic Stress
New Zealand Banknotes in Circulation, 2016 – 2023
New Zealand Coins Minting Volume (Million) (F4)
New Zealand Banknotes in Circulation (Monthly), July’23 - Jan'24
New Zealand Banknotes in Hands of Public in Circulation, 2016 – 2023
New Zealand LSD Notes in Hands of Public, 2016 – 2023
New Zealand Currency Interest Rate Sensitivity, 2018 – 2023
Fiji Banknotes in Circulation, July 2021 – July 2023
Fiji Total Notes and Coins in Circulation, July 2020 – July 2023
Fiji Cost of Currency Issued, July 2020 – July 2023
Fiji Total Notes and Coins, July 2020 – July 2023
India Expenditure on Printing of Notes, FY’19 – FY’23
India Total Banknotes in Circulation, by Volume, FY 2017 – FY 2023
India Banknotes in Circulation, by Denomination in Volume and Value, FY 2021 – FY 2023
India Digital Rupee (e-Rupi) in Circulation, by Volume and Value, 2023
India Indent and Supply of Banknotes, by BRBNMPL and SPMCIL, FY 2020 - FY2023
India Number of Counterfeit Notes Detected (Number of Pieces), FY 2020 – FY 2023
India Counterfeit Banknotes by Denominations (Number of Pieces), FY 2020 – FY 2023
The Movement of Banknotes in Japan
Japan Annual Average Banknotes Issued, 2018 – 2023
Japan Cost of Production of Banknotes, 2018 - 2023
Japan Money Stock (Average Amounts Outstanding), 2018 - 2021
Japan Banknotes in Circulation in Value, 2017 – 2023
Japan Coins in Circulation in Value, 2017 - 2023
Japan Banknotes in Circulation in Value, (in 100 Million YEN) 2016 – 2022
Japan Coins in Circulation in Value (in 100 Million YEN), 2016 – 2022
Japan Cash Share of in-person Transaction Value, 2022
Laos Currency Growth, 2022
Laos Banknotes in Circulation, 2018 – 2022
Singapore Money Supply, 2021 – 2023
Singapore Total Currency in Circulation, 2016 – 2022
Singapore Notes in Circulation, 2016 – 2022
Singapore Coins in Circulation, 2016 – 2022
Singapore Currency in Active Circulation Monthly, Jan'2023 – Jan’2024
Singapore Currency Exchange Rates, 2016 – 2023
Pakistan Banknotes Features by Denomination
Pakistan Banknotes Issued Net by Value, FY’2018 - FY’2023
Pakistan Banknotes Printing Costs, FY’18 – FY’23
Pakistan Banknotes in Circulation by Value, FY’17 – FY’23
Pakistan Banknotes Coins in Circulation, FY’20 – FY’23
Pakistan Banknotes Features by Denomination
Bangladesh Current Note Printing Expenditure, FY’2017 – FY’2023
Bangladesh Total Banknotes in Circulation in Volume, FY’2021 - FY’2023
Bangladesh Circulation and Cash in Hand, FY’2017 – FY’2023
Bangladesh Banknotes Circulation by Denomination, by Value, FY’2017 – FY’2023
Vietnam Percentage Money Supply of GDP (%), 2016 – 2022
Vietnam Banknote Types of Banknotes, by Denominations
Vietnam Cash Circulated Outside Banking System, 2018 - 2022
Indonesia Printed Banknotes, December, 2018 – 2022
Indonesia Currency in Circulation, by Volume, FY 2019 – FY 2023
Indonesia Currency in Circulation, by Volume (Monthly), Apr’2023 – Jan’2024
Indonesia Counterfeit Currency Ratio, 2020 - 2023
Philippines Cost of Minting/Printing of Currency, FY 2020 - FY 2023
Philippines Banknotes and Coins Production Volume, 2022
Philippines Currency in Circulation, by Value, FY 2020 – FY 2023
Philippines Monetary Aggregates (Billion PHP), 2018 – 2022
Philippines Banknotes New Generation Currency Series
Philippines 20-Piso Banknotes in Circulation, 2020 – 2022
Philippines 20-Piso Coins in Circulation, 2020 – 2022
Philippines 20-Piso Banknotes Deposit Classifications, 2020 - 2022
Philippines Counterfeited Banknotes, 2018 – 2021