The Reserve Bank of New Zealand is committed to evolving products and services in line with and in anticipation of future currency demands.
While other means of payment keep growing, cash remains in strong demand, and we need to keep it current and viable for its users.
The evolution of New Zealand’s banknotes will take another step at the end of next year, when our next series of banknotes starts to enter circulation.
We have selected Canadian Banknote Company to design and print New Zealand’s banknotes for a five-year period. The Company has a strong reputation for technologically advanced printing, and currently manufactures New Zealand’s passports.
It also prints the Bank of Canada’s banknotes.
No design change
With the focus of the banknote upgrade being to improve and update security features, we are not changing the New Zealanders or the flora or fauna depicted on the notes.
Our research shows that the public generally like the design of the existing banknotes, particularly the New Zealand themes. Given the technological advances in the printing process, we expect the new notes will have a more modern look, finer detail and improved colour.
The notes will contain more sophisticated security features that will greatly enhance the overall design. They will feature transparent windows, as with the current series.
However, these will feature a greater level of both design and security. Several other security features including colour changing and optically variable features will be added to the new notes.
We will also improve design features to help visually impaired people identify the notes, and differentiate the denominations.
Variables & Risks
There are many variables and risks in the conversion of a design into a printed banknote too. We expect to publicly release the ‘near final’ designs in November, after they have been tested to ensure the designs are viable, and can be printed successfully in a robust, secure and durable manner; and they can be accommodated by businesses, retailers, banks and others key users such as banknote equipment manufacturers.
A new series will provide the Bank with new opportunities in banknote quality assurance, with new technologies becoming available in note processing detectors and remote data capture. A banknote could soon be tracked and quality assessed in remote processing facilities, which has potential impacts across the industry.
The Reserve Bank is looking closely at new technologies and working with the industry to understand better how they are operating in the New Zealand context.
Mechanisation and data analysis are becoming the future of currency management.
Other products
Coins are also an interesting area for innovation.
The Royal Canadian Mint, who produces our 10 cent, 20 cent and 50 cent coins, continues to evaluate new opportunities for innovation.
In ‘Currency News’ (June 2014 issue), they revealed significant improvements in high-speed minting technology, which will revolutionise coloured circulating coins.
This opportunity, which could be a first for New Zealand, is currently under evaluation by the Bank’s currency staff. The Bank continues to evaluate unique opportunities to celebrate our heritage, and encourage a new generation of numismatists.
The Gallipoli centenary will take place next year and we are looking at opportunities with New Zealand Post to mark this occasion.
New Zealand currency is an evolving journey and we are looking forward to sharing that with you all in 2015 and into the future.
Geoff Bascand is Deputy Governor and Head of Operations of the Reserve Bank of New Zealand, The above is an extract of his address at the Royal Numismatic Society in Wellington on July 5, 2014. For full text of his speech, please visit www.rbnz.govt.nz. Please read related report in this Section.
