Asia-Pacific Banknote Market Performance (2018-2023)

Executive Summary

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.

• Australia Banknotes: The COVID-19 pandemic significantly affected the demand for banknotes in 2020 and 2021. While there was a persistent high demand for AUD 50 and AUD 100 banknotes, digital payments witnessed a steady rise. 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%, respectively, 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.

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.

Period of Study

• 2018 - 2023: Past and Present Scenario

Key Areas Discussed in the Study

• Banknotes Print Orders
• Banknotes Production
• Printing cost of Banknotes
• Banknotes Production by Denomination
• Banknotes Circulation
• Banknotes Circulation by Denomination
• Counterfeit Banknotes
• Polymer Banknotes

Major Countries Covered in the Asia-Pacific Region:

• Australia
• New Zealand
• Fiji
• India
• Japan
• Laos
• Singapore
• Pakistan
• Bangladesh
• Vietnam
• Indonesia
• Philippines

Key Questions Answered

1. How is the global banknote market is performing?

2. What is the regional breakup of banknotes adoption worldwide and Asia’s placement in the global market?

3. What are the most traded currencies worldwide?

4. What is banknote market scenario of major Oceania countries?

5. What is the currency production volume of the various Asia-Pacific countries?

6. What is the key facts about banknotes in the major Asia-Pacific countries covered ?

7. What is the banknotes printing cost in various Asia-Pacific countries?

8. What is the total currency in circulation in each major Asia-Pacific Countries and what is the value by different banknote denominations?

9. What is the scenario of counterfeit banknotes detection in the region?

10. What all Asian countries adopted Polymer banknotes? Show more