Despite predictions of cash’s immanent demise,
it remains king – especially for small value payments emphasises De
La Rue, the world’s largest private paper currency and security
paper producer.
it remains king – especially for small value payments emphasises De
La Rue, the world’s largest private paper currency and security
paper producer.
Backing its claim, the UK company’s Security
and Paper Print (SPP) division which is involved in the production
of over 150 national currencies produced strong results in the
financial year ended 31 March 2008.
and Paper Print (SPP) division which is involved in the production
of over 150 national currencies produced strong results in the
financial year ended 31 March 2008.
Maintaining a strong growth trend, the banknote
unit operated at near capacity levels throughout the year with
production volume increasing by 13.4 percent compared with the
previous year.
unit operated at near capacity levels throughout the year with
production volume increasing by 13.4 percent compared with the
previous year.
In the year to 31 March 2007 a 19.5 percent
increase in banknote production volume was reported. Banknote paper
volumes in the 2007/2008 financial year were up 19.2 percent
compared with a 3.6 percent increase in the previous year.
increase in banknote production volume was reported. Banknote paper
volumes in the 2007/2008 financial year were up 19.2 percent
compared with a 3.6 percent increase in the previous year.
The SPP division’s revenue in the 2007/08
financial year was £408.6 million ($800 million), up 15.3 percent
compared with the previous year. Operating profit lifted 19.5
percent to £79.6 million. The currency order book remains strong
and is at a four year high, noted De La Rue.
financial year was £408.6 million ($800 million), up 15.3 percent
compared with the previous year. Operating profit lifted 19.5
percent to £79.6 million. The currency order book remains strong
and is at a four year high, noted De La Rue.
Notably even in countries such as the UK where
debit and credit card use is extensive, cash in circulation
continues to rise. According to the Bank of England (BOE) the value
of bank notes in circulation increased from £22.79 billion in June
1998 to £42.16 billion in June 2008, an increase of 85 percent.
During the period the UK’s nominal GDP increased by 68 percent
according to BOE data.
debit and credit card use is extensive, cash in circulation
continues to rise. According to the Bank of England (BOE) the value
of bank notes in circulation increased from £22.79 billion in June
1998 to £42.16 billion in June 2008, an increase of 85 percent.
During the period the UK’s nominal GDP increased by 68 percent
according to BOE data.
A similar situation is also evident in the US.
The Federal Reserve Board (Fed) re-ported that between the end of
1997 and the end of 2007 the value of bank notes and coins in
circulation increased by 73 percent, from $450 billion to $780
billion.
The Federal Reserve Board (Fed) re-ported that between the end of
1997 and the end of 2007 the value of bank notes and coins in
circulation increased by 73 percent, from $450 billion to $780
billion.
During the period from 1997 to 2007 the US’
nominal GDP increased by 66 percent, according to the US Department
of Commerce. At the end of 2007, $100 notes accounted for three
quarters of the total value of currency in circulation, according
to the Fed.
nominal GDP increased by 66 percent, according to the US Department
of Commerce. At the end of 2007, $100 notes accounted for three
quarters of the total value of currency in circulation, according
to the Fed.
In the US the number of new notes printed each
year has remained stable at between 8 billion and 9 billion (about
26 per US resident) for almost a decade. Annual costs of new
currency incurred by the Fed such as printing, destruction and
transport were $570 million.
year has remained stable at between 8 billion and 9 billion (about
26 per US resident) for almost a decade. Annual costs of new
currency incurred by the Fed such as printing, destruction and
transport were $570 million.
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