Interesting developments in currency denomination structures
Antti Heinonen explores recent changes in currency structures and the reasons behind them
Historically, most issuing authorities regularly made inflation corrections to the currency structure. New higher denomination notes were introduced, and simultaneously low-end notes were replaced with coins.
In the 1980s, Payne and Morgan1 studied a number of currencies and observed that the transition point between coins and notes was between D/50 and D/20, while the highest denomination was 5D, where D was the average day’s pay. Their study was not based on any theory but the result of their
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Currency
Nigeria to discourage cash withdrawals and make deposits easier
Central bank says reform package aims to reduce cash usage and tackle money laundering
Hedge funds cut BoJ bets after torrid year in yen rates
Dealers see lighter positioning after shock October election saw more than $300m of losses, compounding April’s pain
Cash is the tender of last resort – panel
Officials at Central Banking Autumn Meetings discuss risks of long-term outages in era of digital payments
Support for euro hits ‘record highs’ – ECB
Previously sceptical countries have grown to like shared currency, research suggests
South Sudan opens new currency centre as UN warns of looming war
Efforts to decentralise ops come after General Assembly hears that political transition is ‘falling apart’
Taiwan’s central bank seeks oversight over stablecoin issuance
Deputy governor says potentially volatile assets could affect financial stability
Do BIS volumes soar past the trend?
Average daily FX volumes have surged to $9.6 trillion in latest triennial survey, but are these figures representative?
Hungary’s opposition considering joining euro if elected
Country could be ‘biggest winner’ of non-eurozone EU countries by introducing shared currency