Global Banknote Market Report: 2013 Edition
Banknote is a promissory note, issued by a bank, which is payable to the bearer on demand. It is also known as a ‘bill’ or a ‘note’. According to the existing records, the paper money was first used way back in 7th Century in China. However, the first fully printed banknote appeared in 1853. The banknotes are issued by the Central Bank of the respective countries. In addition to this, the Central Bank is also responsible for the destruction of the unfit banknotes for circulation. Traditionally, cotton paper was used in manufacturing of the banknotes. However, due to high destruction rate of cotton banknotes, polyester substrates are now used in manufacturing of banknotes called polymer banknotes. The banknote issuing authorities are focused to provide high standards of quality and security, apart from ensuring adequate public confidence in the currency. The global banknote issuance is on a continual rise and the same is expected to grow further in the future.
In today’s business arena, the growth of trade and commerce across all geographic nations can be attributed to the introduction of banknote. In the international market, the US dollar and Euro have a great significance. In recent past, a constant rise in the circulation of the banknotes has been encountered in major economies across the globe. Thus, a constant pressure is built on the banknote manufacturing agencies to maximize their production of banknotes.
A positive or a negative influence can be observed on the supply of money due to a number of macro and micro factors. Macro factors include GDP, demography, and inflation; whereas the micro factors are user friendliness and safety, etc. One of the emerging trends in the global banknote industry is the focus of the banknotes issuing authorities and other agencies involved in the manufacturing and circulation of banknotes, on technological innovations. However, over the past years, this industry is suffering from an increased rate of counterfeit currencies.
With the ability to manufacture high quality banknotes, ability to develop advance security features and with a constant focus on research and development; the banknote industry encounters an intense competitive environment. Apart from various small players, the major players of this industry include De La Rue plc, Giesecke & Devrient (G&D) Group, Oberthur, Crane Currency, and Fortress Paper Ltd.
This report provides an analysis of the global banknote industry. It discusses major challenges faced by the industry along with major market tends and industry developments. The report also includes the competitive structure of the industry, regional analysis and profiles of major players with a discussion of their key business strategies.