The average cost of replacing worn banknotes is causing some countries to think twice about re-producing them.
In October, the Bank of Russia announced that it would stop issuing 10-ruble banknotes in 2010 because they wear out quickly and are too expensive to produce.
Much like when the Canadian Toonie was introduced in 1996, a coin will replace the bills.
According to the Bank of Russia, the switch from bill to coin will save them approximately 18 billion rubles in the next ten years.
But not all countries are doing away with paper banknotes because of wear and tear. Some are simply exercising more control.
In neighboring Ukraine, for example, the National Bank of Ukraine (NBU) has ordered commercial banks to crack down on taking worn banknotes out of circulation, estimating that the number of unfit bills in the hands of the public have increased by nearly 5.4% since last year.
Ukraine is an “almost exclusively a cash payment country.”
Some companies, however, are producing new kinds of banknotes that may appeal to countries worried about monetary wear and tear such as Russia and Ukraine.
This fall, Fortress Paper Ltd. – an international supplier of security and specialty papers, including banknotes – announced they will introduce Durasafe banknote paper to the world at the Banknote 2009 Conference in Washington, D.C. this December.
Durasafe is a banknote paper that includes a blend of polymer thus allowing the banknotes to last much longer. On top of that, these hybrid banknotes are highly securitized:
“Durasafe adds the unique ability to implement security features consisting of semi and fully transparent windows of different shapes, sizes and positions,” the company said in October.
Durasafe is anticipated to be commercially available in 2010.
Read more about Durasafe here: The Launch of Durasafe Banknote Paper
MakeBiz.Net: “Ten-To-Print Banknotes Will Cease in 2010″
Banknote News: “Russia to replace 10-ruble note with coin in 2010″
Clear Time: “NBU urged to commercial to enhance the collection of ‘waste paper’”
Foreign Adoption: “Urainian money”