Banknotes In Circulation Research Articles

Counterfeit banknote identification based on outliers detection methods

Counterfeit banknotes in circulation in the economy are a long-standing and recurring problem. Technological improvements are applied to produce increasingly convincing counterfeit banknotes. In contrast, sophisticated strategies to identify counterfeit notes remain an up-to-date and fascinating research topic of great interest. The literature presents several techniques for detecting counterfeit banknotes. In this study, outlier detection methodologies are presented as adapted mechanisms to assist in the fight against counterfeit banknotes. This study addresses and tests multivariate outlier detection techniques' efficiency in identifying counterfeit banknotes. A comprehensive computational experiment proves the great adaptability of the methods to multivariate outliers in the identification of counterfeit banknotes. In particular, the Data-driven Cluster Analysis Method (DDCAM) technique presented promising and optimistic results through several quality and performance measurement metrics, suggesting a hopeful future for detecting counterfeit banknotes.

Investigation of Bacterial Contaminants and Their Antibiotic Susceptibility on Yemeni Banknotes in Aden City, Yemen

Background: Banknotes are among the objects frequently exchanged between people and can serve as a vehicle for the transmission of infectious agents. Therefore, the present study aimed to isolate and identify potentially pathogenic bacteria on Yemeni banknotes collected from various municipal sources in Aden city, south of Yemen. In addition, the susceptibility of the isolated bacterial species to commonly used antibiotics was tested. Methods: A descriptive cross-sectional study was conducted on 240 Yemeni banknotes of various denominations randomly collected from people from different places in Aden city between November 2019 and February 2020. Swabs from the surfaces of banknotes were streaked onto blood agar, chocolate agar, mannitol salt agar and MacConkey agar and incubated at 37 °C for 48 hours. After isolation, bacterial species were identified and tested for their susceptibility to commonly used antibiotics using established techniques. Results: Out of 240 banknotes examined, 98.3% were found to be contaminated with bacteria, with a 95% confidence interval (CI) ranging from 96 to 99. Among the isolated bacteria, 17.4% were Gram-positive cocci, 33% were Gram-negative bacilli and 49.6% were a combination of both. The mean plate counts of bacterial colonies ranged from 163.6±51.0 colony-forming units (CFU)/ml (95% CI: 147.3–179.9) for banknotes with a denomination of 100 Yemeni rials (YRIs) to 257.1±52.0 CFU/ml (95% CI: 240.5–273.7) for banknotes with a denomination of 50 YRIs. Staphylococcus aureus was the most frequently isolated bacterial species, detected on 66.9% of contaminated banknotes, followed by Escherichia coli (60.6%) and Pseudomonas aeruginosa (42.8%). Regarding antibiotic resistance, most S. aureus isolates showed resistance to ceftazidime (80.1%), followed by ceftriaxone (78.2%), ampicillin (77.6%) and co-trimoxazole (69.3%). On the other hand, most E. coli isolates showed resistance to amoxicillin/clavulanate (84.6%), followed by ceftriaxone (79.7%), ceftazidime (76.9%), ampicillin (58.3%) and ciprofloxacin (58.1%), while most P. aeruginosa isolates showed resistance to ceftriaxone (83.5%), followed by ceftazidime (80.2%) and ciprofloxacin (54.9%). Conclusion: Most banknotes in circulation in Aden city are contaminated with bacteria, predominantly S. aureus and E. coli, with lower denomination banknotes tending to have higher contamination levels. The high contamination rate of banknotes raises concerns about their potential in transmitting infectious diseases and emphasizes the advantages of transitioning to cashless payments. A substantial proportion of bacterial species isolated from banknotes exhibit resistance to commonly used antibiotics, raising concerns about the possible transmission of multidrug-resistant bacteria through the exchange of banknotes. Therefore, it is necessary to raise awareness and improve hygiene practices to minimize the transmission of bacteria and antibiotic resistance through the exchange of banknotes.

Counterfeiting of banknotes in Poland

The article presents in a broad perspective the phnomenon of the banknote counterfeiting in Poland. It was was investigated using an analytical approach based on various factors characterizing the discussed practice. The denominations most exposed to counterfeiting (PLN 100 and PLN 200) were identified, the number of criminal proceedings conducted in cases of money counterfeiting was examined, and the structure of banknotes seized as doubtful was analysed. In addition, an analysis of the PPM indicator showing the number of counterfeits per 1 million banknotes in circulation was carried out, comparing Poland's data with data from other countries. The article also presents the basic classification of banknote counterfeits. The conducted research leads to the conclusion that Polish banknotes are characterized by high resistance to counterfeiting, resulting from the recent modernization of the banknotes and their well-chosen security features. At the same time, the Polish currency - due to its local nature and relative weakness against the EUR and USD - is not attractive to international criminal groups specializing in counterfeiting

On the question of the concept of the monetary system

This article is devoted to the concept of the monetary system. The paper analyzes the definitions of the monetary system given by the leading representatives of financial and legal science, offers the author’s view on the structure of the monetary system. Based on the results of the study, it was determined that the monetary system is a historically established and established by the law form of organization of money circulation, consisting of a set of banknotes in circulation, public authorities and other organizations involved in the organization of money circulation, technologies and methods of circulation regulation. national currency in cash and non-cash forms, starting from the moment of issue of banknotes into circulation (issue) and ending with the moment of their withdrawal from circulation, as well as operations with foreign currency and other objects that perform certain monetary functions.

An Overview of Central Bank of Nigeria's Recent Cash Re-design and Cashless Economy Agenda

Central Bank of Nigeria (CBN) announced on 26 October 2022 the re-design of three out of the eight banknotes in circulation. The move is geared towards entrenching the cashless economy agenda. According to CBN, over 85% of the currency in circulation is kept outside the vaults of commercial banks, and ransom-taking in Nigeria needs to be addressed urgently. This Paper attempts to look at this new policy from the lens of the law, using the doctrinal method of research methodology. The timing, which was very close to the general elections, was wrong, and the three months time frame given to people to swap old notes with new ones was too short. Also, CBN acted in contravention of the Money Laundering Act 2022. The Paper recommends that for the cashless policy to be successful, the e-payment system needs to be upgraded in Nigeria.

Forecasting Euro Banknotes in Circulation with Structural Time Series Models in Times of the COVID-19 Pandemic

Forecasting Euro Banknotes in Circulation with Structural Time Series Models in Times of the COVID-19 Pandemic

Forecasting Banknote Circulation During the COVID-19 Pandemic Using Structural Time Series Models

Forecasting Banknote Circulation During the COVID-19 Pandemic Using Structural Time Series Models

Forecasting Banknote Circulation During the Covid-19 Pandemic Using Structural Time Series Models

Forecasting Banknote Circulation During the Covid-19 Pandemic Using Structural Time Series Models

Inside the Black Box: Tools for Understanding Cash Circulation

In this study, we assess the main drivers of banknote circulation in Italy over the last decades by using a number of econometric tools proposed in the literature. We explore the role played by the banknote flows from abroad, changes in the institutional framework and disentangle domestic demand for transaction purposes from other components, including liquidity hoarding. We find that changes in legal limits on cash payment and money holdings for precautionary reasons explain the bulk of cash dynamics. Moreover, the share of transaction demand declined over time becoming of second-order. Finally, we find that, during the pandemic from Covid-19, the exceptional raise in cash circulation was mostly the result of an increase in precautionary demand due to both economic uncertainty and restrictions to mobility that resulted into a marked decline of lodgments to the central bank.

First liquid chromatography-high resolution mass spectrometry method for the determination of cocaine on banknote dust.

Prevalence measures of sociological interest concerning cocaine presence on banknotes are fraught with (i) the extreme variability of its concentration (seven orders of magnitude); (ii) the high number of banknotes needed for the statistical significance. Banknote dust from counting machines from a large and representative number of banknotes in circulation in a specific area represents the most eligible sample to ascertain cocaine circulation. No chromatographic method is available in this respect. This study aims at developing the first analytical methodology for the determination of cocaine in banknote dust samples. This novel and straightforward approach consists of a simple methanol extraction followed by analytical determinations via ultra-high performance liquid chromatography coupled to Orbitrap high-resolution mass spectrometry. Satisfactory analytical performance was obtained with a coefficient of determination of 0.996; maximum within-run and between-run precisions were, respectively, 1.85% and 5.20%. Limits of detection and quantification were, respectively, 3 and 9ng/mL with an overall process efficiency of 93.2%. The method developed was successfully applied to 9 banknote dust samples from local banknote counter machines. The found concentrations ranged from 2.18E + 02 to 2.31E + 03μg of cocaine per gram of banknote dust and varied only one order of magnitude, much less than cocaine concentration on banknotes. To have an idea of cocaine circulation in a geographical area, the sampling of banknote dust, compared to banknotes, consists of tremendous advantages in terms of statistical significance, higher cocaine concentrations, and lower variability: this is crucial from the sociological point of view.

Foreign Banks of Issue in Prewar China: The Notes of the Netherlands Trading Society, Deutsch-Asiatische Bank and the International Banking Corporation

To date, much of the scholarly literature on anti-foreign boycotts in prewar China focused on cigarettes. However, foreign banks were also targeted, particularly regarding their most visible infringement of Chinese sovereignty: banknotes. Piecing together note circulation data on the smaller European and American banks operating in Shanghai is a work in progress. In this research note, I present provisional data about three of the most important second-tier foreign banks in Shanghai: the Netherlands Trading Society, the German Deutsch-Asiatische Bank and the International Banking Corporation. Tentative conclusions can already be drawn. These banks by and large lost traction in the 1930s insofar as banknote circulation volumes were concerned. On the other hand, the political vacuum that befell the Chinese market following the downfall of the Qing was the single biggest boon of the banks under review. The redemption freeze on Chinese bank notes of 1916 seems to have had a partial effect in terms of regaining Chinese trust in Chinese banknotes at the expense of foreign ones. Unlike British banks, Netherlands Trading Society circulation figures never recovered in the early 1920s. Needless to say, much more work can be carried out in that regard as the pertinent archives are situated right around the world.

Trace evidence dynamics of cocaine on banknotes: A comparison study of paper and polymer banknotes

It is well established that a large proportion of paper banknotes in circulation contain traces of cocaine. Being able to discriminate between the innocent transfer of illicit drug particles acquired through everyday interactions with surfaces such as banknotes, as opposed to transfer resulting from criminal activities can provide valuable intelligence that can inform an investigation. With many countries adopting polymer banknotes as legal tender, it is important to consider the transfer of cocaine from these surfaces as well as the retention of these particulates on polymer banknotes for evaluative interpretation in crime reconstruction. This comparison study assessed three contact variables (force, time, and rotation) on the transfer of cocaine particulates from paper and polymer banknotes onto a human skin proxy. The persistence of cocaine particulates was assessed through a realistic scenario which mimicked a cash transaction. Quantifiable amounts of cocaine were transferred onto the human skin proxy across all of the contacts assessed, with a greater transfer observed with contacts involving polymer banknotes and those contacts which involved rotation. Following extensive handling, cocaine persisted on both banknote types, with paper banknotes retaining larger amounts of cocaine than polymer banknotes. These findings show that cocaine can persist on both paper and polymer banknotes for extended periods of time following handling and is therefore available for transfer. This transfer then readily occurs, even when contact is brief and involves relatively small forces. A key distinction between the banknote types was that cocaine particulates are more likely to transfer from polymer banknotes due to the lower retention rate of particulates on this surface. Such insights can aid in evaluating the relevance of illicit drug particles identified on items or persons of interest in crime reconstruction approaches.

“Alpine Vendée”. Transformation of the Popular Protest in Savoy, 1793

The author examines the course, forms and causes of the defeat of the anti-republican uprisings in the lands of the former Duchy of Savoy, annexed to France during the Revolution of the eighteenth century. The aim of the study is to analyse the transformation of popular protest in Savoy over the course of 1793. The events of January–October 1793 are considered in this article in the light of the concept of the “popular counter-revolution”. The annexation of the Savoy to France was strongly supported by its population, but immediately after the introduction of the civil system of the clergy and the circulation of banknotes, the social situation in the region came to a head. The decree of the French National Convention on mass conscription into the republican army also contributed to the social upheaval. The protest had its own characteristics and evolved from a traditional form of rebellion to a local civil war, in which a simple political programme of the rebels also emerged. However, the peasants were unprepared to participate in hostilities, had no military experience, and the forces and resources of the Sardinian army were limited. Realising that the plan to return Savoy under the rule of the king by the end of September 1793 was unworkable, the troops had to return to Piedmont. The restoration of the Republican rule over the rebellious department marked the beginning of a policy of revolutionary terror in Savoy.

About alternative concepts of money in Russia (to the 160th anniversary of the birth of A.A. Manuylov). Materials for lectures and seminars

This article examines the scientific ideas about the substantial value of coins, paper and monetary signs of circulation in the Russian economic theory in the second half of the XIX — early XX centuries. The critical re-evaluation of foreign concepts contributed to a deep study of the concept of value, nature and functional role of banknotes in the national economy. The factors regulating the value of banknotes and the key criteria of the new model of elastic monetary circulation are considered. The concepts of Russian economists (A.N. Miklashevsky, A.A. Manuylov, L.V. Fedorovich, M.I. Tugan-Baranovsky, P.A. Nikolsky, N.I. Sieber, and many others) reveal the laws of pricing that affect the value of money. It is suggested that money is «an integral part of the developed social division of labor». In this context, we study the process of forming a systematic understanding of the relationship between different market segments and the state monetary economy, which revealed the specific role of money as an instrument that unites individual markets.
 
 It is concluded that, first, in the course of a critical analysis of the concepts of money and the development of the principles of reforming the monetary system in the Russian literature, the foundations of a macroeconomic understanding of the market economy were laid. The semantic «content» of the concept of «conjuncture» indicated an increased interest in macroeconomic research. Second, the development of the theory of the value of money and to elucidate their role in economic conditions contributed to the opening of several new, «frontier» of economic topics, including the theory of industrial crises and characteristics of the circulation of banknotes in extreme conditions at the beginning of the XX century.
 
 The fundamental economic concepts of value, price and money are still the «platform» of the most acute theoretical discussions, in which arguments in favor of the interests of traditional market actors, entrepreneurs and the state, are supplemented by the motives of transnational institutions. Knowledge of the theories of the value of money sheds light on the effectiveness of tools for regulating market conditions. The model of monetary circulation as an effective tool for regulating budget deficits and industrial activity during the crisis (with the help of the State Bank`s commercial portfolio) was the experience of the circulation of maternity money in the twentieth century. Familiarity with the positions of leading scientists gives an idea of alternative approaches in the interpretation of value (classical school, Marxism), or value (German historical school, marginalism, nominalism), creates a solid basis for analyzing the features of the domestic monetary system and attempts to reform it at the present time.
 
 A retrospective analysis of the theories of the value of money will help to form a clear understanding of the peculiarities of domestic monetary policy, to find out its role in the development of crises, inflation and «lack of money». The article, addressed to teachers of economic theory and the history of economic studies, graduate students, students, and anyone interested in the theory and practice of monetary circulation, attempts to «reveal» the secrets of the economic analysis of value — one of the key problems of economic science.

BANKNOTES OF UKRAINE WITH MANUFACTURER’S DEFECTS AND PECULIARITIES OF ITS FORENSIC RESEARCH

The article briefly describes the history of the emergence and development of paper money in Ukraine, special attention is paid to the period of independence of our state. In less than 30 years, the National Bank of Ukraine has issued four generations of banknotes. As of January 01, 2021, there were about 3 billion banknotes in circulation. Among the circulated banknotes, there are also those that differ slightly from the banknotes presented by the National Bank of Ukraine (NBU). Based on the Resolution of the Board of the National Bank of Ukraine dated 03.12.2018 No. 134 (as amended) “Rules for determining payment characteristics and exchange of banknotes, exchange and circulating coins of the national currency of Ukraine”, the concepts of “banknotes with manufacturer defects” and “banknote defects” are disclosed. The article describes the technological process of making paper money. At the first stage, sheets of special paper are made in the banknote paper factory. Further, these sheets are sent to the NBU Banknote Factory, where all the images are applied on the sheets and cutting is carried out. The authors propose to systematize the types of defects in accordance with the stage of the technological process of manufacturing banknotes, at which these defects could arise. It is also proposed to distinguish four such stages: in the process of manufacturing banknote paper; at the stage of applying images on the front and back sides of sheets using forms of offset and gravure printing; when applying serial numbers; when cutting sheets into separate banknotes. The list of possible types of defects that may arise at one stage or another of the production process is given quite fully, some of them are illustrated for clarity, and variants of defects that are found in banknotes of different generations are analyzed. Based on the study of the problem, the authors propose an algorithm for researching such banknotes, offer options for intermediate and final expert conclusions.

Foreign Demand for Euro Banknotes

In order to understand why there is a continuous increase in euro banknote circulation even though the use of cash for transactions is decreasing in the euro area – a phenomenon known as the paradox of banknotes – the members of the Overseas workstream of the Eurosystem Research Network on Cash (EURECA) have conducted a study on the foreign demand for euro banknotes. The results of this study are based on desk research using data collected in the Eurosystem and from other organisations, and using both proven and innovative techniques. JEL Classification: E41, E47, E49, E59, F24

How Much Can the Swiss National Bank Contribute to the Financing of the Swiss Old Age Insurance (AHV)?

The monetary base is the most important monetary policy tool of the Swiss National Bank (SNB) in order to achieve the statutory objective of price stability. The SNB can control the monetary base through the purchase and sale of gold, foreign exchange and domestic debt securities. A purchase of these assets leads to an increase in the monetary base and a sale to a reduction. The attached balance sheet shows the assets acquired by the SNB as part of its monetary policy. At the end of 2017, the SNB owned gold for CHF 42.5 billion; CHF 794.6 billion in foreign exchange; and CHF 4 billion in securities denominated in Swiss francs. The foreign exchange position involves foreign financial assets, including debt securities and shares, while the Swiss franc securities include domestic and foreign debt instruments. The SNB is not active in the domestic stock market, as this would lead to undue state influence on Swiss companies. The liabilities side of the balance sheet shows the financing of the SNB’s investments. Banknotes in circulation amounted to CHF 81.6 billion at the end of 2017 and sight deposits held by domestic banks with the SNB totaled CHF 470.4 billion. Together this results in a supply of central bank money or monetary base of CHF 552 billion. Foreign liabilities, liabilities in foreign currency and the other sight liabilities are not added to the monetary base. The surplus of assets over liabilities results in equity capital. At the end of 2017, the equity ratio of the SNB, which sets equity in relation to total assets, was 16.3 percent.

Modelling the lifetime of banknotes with a semi-Markov chain model

The quality of banknotes in circulation is important for cash cycles. Central banks continuously try to find new methods for improving the quality of banknotes in circulation, whether by improving the specification of the banknotes or the characteristics of the cash cycle. The way that banknotes deteriorate and the speed with which they do so are some of the main factors affecting the quality of banknotes in circulation and thus, have been drawing the interest of central banks. This study develops a new semi-Markov chain model that could be used by banknote printing companies and central banks to model banknote deterioration. Discrete states of fitness are used in this semi-Markov model to simulate how the banknotes transit between fitness levels. The model requires some input parameters to simulate the cash cycle and present the probability distributions for each state. It is applied to theoretical cash cycles and a sensitivity analysis is performed to identify the parameters that have the greatest impact on the quality of banknotes. This study is the first to apply a semi-Markov model to estimate the lifetime of banknotes. It can be used as a forecasting tool for the proportion of unfit banknotes in circulation.

Reasons for Adopting Coupons of Government Interest Securities into Money Circulation in the Course of Aggravation of the Monetary Crisis of 1917–1918 in the Simbirsk and Kazan Provinces

Introduction. The study focuses on issues of money circulation in the Simbirsk and Kazan provinces during the period of the monetary crisis, the aggravation of which occurred in 1917–1918. These provinces simultaneously underwent all the negative consequences of the collapse of the financial system of Russia, including monetary circulation, and then almost equally resolved the issues of lack of circulation of banknotes. To overcome the crisis situation caused by the lack of cash, regional and central authorities have applied various ways to resolve it, one of which was the widespread use of coupons of government interest securities as cash equivalents. Subject. Against the background of the analysis of the general economic situation in Russia, the presented material reveals the circumstances of the resolution of the monetary crisis in the Simbirsk and Kazan provinces by using coupons of government interest securities in money circulation. Objectives of Study. The objectives of the study and the subsequent analysis were: to identify the reasons why the central authorities of Russia, as well as the regional authorities of the Simbirsk and Kazan provinces, decided to use funds coupons in money circulation. Materials and Methods. The study relies on archival materials that contain information about the use of coupons of government interest securities in money circulation. In the course of studying these materials, the information reflected in them was systematized and analyzed. A systematic approach, a comparative analysis and a logical generalization of the results were used. The results of the study. In the course of the study, the reasons for the use of coupons of government interest securities in money circulation were identified, the actions of regional and central authorities that allowed the use of coupons as cash equivalents were analyzed. In addition, new historical facts have been established related to the history of the Simbirsk and Kazan provinces. Discussion and Conclusion. The results of the study indicate that the decisions of government authorities, both central and regional, on the use of government interest securities coupons in money circulation were due to the need to find a way to resolve quickly the monetary crisis caused by a shortage of cash.

Study on the detection of cocaine in Argentinian banknotes by SERS

Flexible Surface-Enhanced Raman Spectroscopy (SERS) substrates based on silver nanoparticles (AgNP) immobilized in agar gels have been developed to detect cocaine in $ 100 Argentinian banknotes by SERS spectroscopy. The AgNP were characterized by absorption spectroscopy and Scanning Transmition Electron Microscopy (STEM). The SERS substrates were first evaluated using a probe molecule, methylene blue (MB), with well-known SERS activity. The achieved limit of detection (LOD) was ∼3 pg.cm−2 (∼60 molecules/spot). SERS experiments with cocaine hydrochloride were performed using these substrates; the LOD achieved was ∼70 ng.cm−2 (0.7 fg/spot). Cocaine was detected on intentionally contaminated $ 100 Argentinian banknotes. Finally, the analysis of 10 banknotes in circulation (one of which was intentionally contaminated as a blind test) resulted in the detection of cocaine in two of the banknotes analysed.