After years of encouragement by the Bank of England, merchants and consumers, Great Britain will soon see a significant increase in the amount of £5 banknotes in circulation.
The move comes after a rather successful year-long pilot project undertaken by HSBC to increase the number of automated teller machines (ATMs) that distribute £5 banknotes (read more about that here)
Earlier this year, the Bank of England said the smaller denomination was beginning to fall out of circulation because consumers considered the “fiver” small change, due to its lack of use in everyday consumption.
The Bank of England said the new level of outputs should dramatically increase the number of £5 banknotes in circulation, and reinvigorate its usage.
“By Easter next year, the number of £5 notes dispensed from ATMs should have increased five-fold,” Bank of England Governor Mervyn King said. “In addition, some other large retailers are also working to increase the number of £5 notes they give out as change.”
British business leaders have been lobbying the country’s central bank for an increase in smaller denominations for some time now claiming that “those who frequently use cash dispensers who don’t want ‘to carry higher-value denominations, especially £20 notes, around in their purses and wallets.’”
These same business leaders said that “despite credit and debit cards, small-ticket items are [still their] lifeblood,” highlighting a continual need for banknotes not only in England, but the world over.
In total, the Bank expects that an extra 400 million £5 notes will enter into circulation each year.
My Finances: “Popular £5 Notes Availability To Increase”
The Daily Mail: “£5 Notes To Be Available From Cash Machines”
Global Paper Security: “British Business Leaders Demand More Ten Pound Banknotes”