Good Practice in Banknote and Currency Management

Banknote and Currency Management Seminar

Good Practice in Banknote and Currency Management

Course Chair: Antti Heinonen, Chairman, Banknote Ethics Initiative and former Director, Banknotes, European Central Bank

Tuesday - 28 May 2019

Currency Management in an Evolving World

The currency landscape: new challenges in the currency life-cycle

Led by the chair, Antti Heinonen, Chairman, Banknote Ethics Initiative and former Director, Banknotes, European Central Bank

 

  • The state of the art of the currency landscape in 2019
  • New roles and responsibilities for currency managers
  • Key forces and dynamics shaping the currency lifecycle
  • Reducing the impact of disruptive technological innovation

Forecasting the demand for banknotes with data analytics

Panel discussion with Marcel van der Woude, Senior Policy Advisor, De Nederlandsche Bank, Nikolaus Bartzsch, Senior Expert, Cash Department, Deutsche Bundesbank and Ilan Steiner, Director of Currency Department, Bank of Israel (invited)

 

  • Framework for identifying and assessing drivers likely to influence banknote demand
  • Key features of models and frameworks for now-casting and forecasting
  • Tips for effectively combining quantitative and qualitative data and variables
  • Emerging trends in the applications of advanced data analytics

New: Cryptoassets and CBDC: how, when and where will they impact traditional currency management

Carl Andreas Claussen, Senior Advisor, Sveriges Riksbank

 

  • Overlaps and differences between privately issued cryptoassets and CBDC’s
  • Understanding the impacts on central banking mandates and responsibilities
  • Implications for currency management
  • Discussion: How can currency harness technological innovation to compete?

Wednesday - 29 May 2019

The Currency Lifecycle: From Design to Destruction

What to take into account when designing a new series – case study

Ilan Steiner, Director of Currency Department, Bank of Israel (invited)

 

  • Overview of the decision making process for a new banknote series
  • Examples of key indicators suggesting a need for change 
  • Frameworks and strategies for planning, design and introduction of a new series
  • The role of communication with, and feedback from, the public

Substrate choices: choosing the right fit

Panel discussion with Trond Eklund, Director, Cashier’s Department, Norges Bank, Speaker to be confirmed, Chief Cashier, Bank of England and Maureen Carroll, Deputy Managing Director, Currency Department, Bank of Canada (invited)

 

  • The role of the substrate in a new series planning, design and introduction
  • Overview of different substrate types
  • Frameworks and indicators for the evaluation of a new substrate
  • Discussion: what do you expect from a banknote substrate in your jurisdiction?  

Banknotes security features: where do technological advancements add value

Ilan Steiner, Director of Currency Department, Bank of Israel (invited)

 

  • Overview of key risks to banknote security in 2019
  • Challenges and opportunities of disruptive technological innovation
  • Examples of design and implementation of successful tech based security features
  • Discussion: Are there too many security features?

Utilising technology to monitor the cash cycle

Marcel van der Woude, Senior Policy Adviser, De Nederlandsche Bank

 

  • Key trends and dynamics shaping the cash cycle
  • The impact of FinTech payment technologies
  • The role of advanced data analytics in data collection and monitoring
  • Case study: Making the most of AI and machine learning

Cash circulation and distribution: what to outsource when and how?

Trond Ekland, Director, Cashier’s Department, Norges Bank and Octavia Gibson, Deputy Director, Currency, Central Bank of Barbados

 

  • Overview of logistical realities for circulation and distribution of cash
  • Tips for innovation in cash processing functions
  • Examples of successfully implemented cost saving strategies
  • Discussion: What to outsource, when and how?  

Thursday - 30 May 2019

Anti-Counterfeiting: Better security and communication

Counterfeiting technology: what are the major threats?

Martin Münd, Senior Counterfeiting Expert, European Central Bank

 

  • Overview of banknotes and security printing trends
  • Practicalities faced in designing and issuing new notes
  • The art of anti-counterfeiting: resilience testing and feature selection for future series
  • Dealing with counterfeit notes: detection and impounding

Anti-counterfeiting and education strategies - case study

Octavia Gibson, Deputy Director, Currency, Central Bank of Barbados

 

  • Key features of modern central bank cash management methods
  • Innovative approaches to the selection of banknote security features: counterfeit analysis
  • Tips for central banks to best equip citizens to identify and report counterfeits
  • Case study: Approaches to counterfeit deterrence

The new realities of public engagement

Maureen Carroll, Deputy Managing Director, Currency Department, Bank of Canada (invited)

 

  • Recognising the importance of effective engagement of a number of key stakeholders
  • Challenges and opportunities of engaging with stakeholder and the general public
  • Tips for understanding growth and changes to communication tools to engage the public
  • Discussion: available channels to engage the public

Friday - 31 May 2019

Currency Management: Strategic Approach

Leadership challenges in currency management

Barnabás Ferenczi, Director, Giesecke & Devrient and former Director of Cash Logistics, Central Bank of Hungary

 

  • Expectations for currency managers: an increased focus on the costs of cash and the drive towards digitalisation
  • Looking towards a “less-cash” society: the creation of extra pressures on the central bank cash function
  • Emergence of new currency and cash cycle management strategies
  • Case study: management strategies within jurisdictions: analysis and suggestions for improvement

Currency management: a risk assessment

Workshop led by the chair, Antti Heinonen, Chairman, Banknote Ethics Initiative and former Director, Banknotes, European Central Bank

 

  • Identification of potential risks through currency life cycle from suppliers to consumers
  • A matrix approved to managing and prioritising risks
  • Examples of the major risks to the business continuity of cash and issue departments
  • Case studies of contingency planning: steps to take once risks have been identified

Course conclusion and action points

Led by the chair, Antti Heinonen

 

  • Summary of the training course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points