Currency Denomination Research Articles

IPCRF: An End-to-End Indian Paper Currency Recognition Framework for Blind and Visually Impaired People

Currency recognition has always been a troublesome task for blind and visually impaired people (BVIP). The problem is more severe in developing countries such as India, where there is still a lack of robust currency recognition systems. BVIP primarily relies on size variations and patterns such as intaglio printings for recognizing the underlying currency denominations. Most of the current Indian legal tenders resemble in size, thus making the identification process more strenuous. Also, the engraved patterns are not as distinctive as BVIP standards, and they fade over time. For an automated paper currency recognition system, issues such as folded or partial views, uneven illumination, and background clutter make it non-trivial and challenging. This paper ventures to present an end-to-end and robust framework for assisting BVIP in recognizing the Indian paper currency denomination. This paper presents a lightweight network, IPCRNet, useful in a resource-constrained environment such as low/medium level smartphones. The proposed network is based on Dense connection, Multi-Dilation, and Depth-wise separable convolution layers. Additionally, we congregated one of the most diversified Indian paper currency image dataset with more than 50,000 images belonging to almost all denominations in circulation. A customized and publically available android application, “Roshni-Currency recognizer”, has also been introduced. The experimental results on multiple datasets demonstrate the superiority of the proposed model. IPCRNet improves the classification accuracy by more than 2% on the proposed dataset compared to the state-of-the-art networks.

Currency Denomination and Borrowing Cost: Evidence from Global Bonds

Currency Denomination and Borrowing Cost: Evidence from Global Bonds

External debt currency denomination and the currency composition of foreign exchange reserves

External debt currency denomination and the currency composition of foreign exchange reserves

Corporate Bond Currency Denomination in Asia: The Role of Financial Market Developments and International Business Relationships

Corporate Bond Currency Denomination in Asia: The Role of Financial Market Developments and International Business Relationships

External Debt Currency Denomination and the Currency Composition of Foreign Exchange Reserves

External Debt Currency Denomination and the Currency Composition of Foreign Exchange Reserves

Examination of Security Features in Nepali Currency of Denomination Rs. 500 and Rs. 1000 Using Video Spectral Comparator-6000

In this work, we have studied security features of Nepali currencies of denomination Rs. 500 and Rs. 1000 of recent two series with the help of Video Spectral Comparator-6000. During examination, mostly ultraviolet, normal, transmitted and oblique light are used. We found nine different security features like fluorescence, water mark, micro text, security thread, intaglio print, see through registor, emboss, optically variable ink and latent image in this work. One feature, latent image is found to be completely removed in new series of both Rs. 500 and Rs. 1000 whereas new important security feature optically variable ink is introduced in new series of Rs. 500. Besides these two features, some are unchanged while some are modified.

Naira note: Potential Environmental Material for Transmitting Bacterial Pathogens among Food Dealers in Umuahia, Nigeria

Inanimate objects can serve as environmental vehicles for transmitting pathogenic bacteria among individuals in the population. Our study revealed that of the 72 naira notes examined, 58 samples representing 80.6% had bacterial contaminants. The bacterial isolates were Staphylococcus aureus (70.8%), Salmonella spp. (51.4%), Escherichia coli (44.4%), Shigella spp. (22.2%), Pseudomonas aeruginosa. (18.1%), and Proteus spp. (1.4%). The naira notes examined were all obtained from food dealers particularly fish sellers, food vendors, and meat sellers. The presence of these bacterial pathogens on naira notes handled by those food dealers is an important public health hazard as they can contaminate food leading to foodborne diseases and intoxications. Our study found that lower denominations of currency notes (naira), were mostly contaminated by these pathogens and this could be as a result of their frequent use in daily transactions.

Indian Currency Denomination Recognition and Fake Currency Identification

Visually impaired and senior citizens find it difficult to identify different banknotes, driving the need for an automated system to recognize currency notes. This study proposes recognizing Indian currency notes of various denominations using Deep Learning through the CNN model. While not recognizing currency notes is one issue, identifying fake notes is another major issue. Currency counterfeiting is the illegal imitation of currency to deceive its recipient. The current existing methodologies for identifying a phony note rely on hardware. A method completely devoid of hardware that relies on specific security features to help distinguish a legitimate currency note from an illegitimate one is much needed. These features are extracted using the boundary box region of interest (ROI) and Canny Edge detection in OpenCV implemented in Python, and the multi scale template matching algorithm is applied to match the security features and differentiate fake notes from legitimate notes.

Decomposition of bank loans and economic activity in TURKEY

ABSTRACT1 1 The views expressed in this paper are only those of the authors and should not be interpreted as reflecting those of the Central Bank of the Republic of Turkey. Email addresses: mailto:Hande.Kucuk@tcmb.gov.tr;Pinar.Ozbay@tcmb.gov.tr;Caglar.Yunculer@tcmb.gov.tr We examine the empirical link between loans and economic activity in Turkey with a focus on the components of loans by borrower (household/business) and by purpose of use (housing/personal) as well as currency of denomination (domestic/foreign). We estimate a separate VAR model for each type of loan and each GDP expenditure item to analyse whether different types of loans have different effects on economic activity and through what channels. According to our empirical results, credit shocks have statistically significant impact on economic activity, especially within the first two quarters. We find that shocks that expand household and TL-denominated business loans by the same rate have quite similar effects on private consumption, final domestic demand and GDP, while household loans has a much smaller impact on investment compared to business loans. While shocks to FX-denominated business loans have significant effect on total investment, they have much weaker effect on private consumption and GDP. The effect of housing loans on investment is found to be comparable to that of business loans, suggesting strong feedback between demand for housing and construction investment. We investigate the robustness of findings to alternative data samples, as well as some alternative identifying restrictions.

Coming to Terms: The Politics of Sovereign Bond Denomination

AbstractGovernments interact strategically with sovereign bond market creditors: they make choices not only about how often and how much to borrow, but also under what terms. The denomination of debt, in domestic or foreign currency, is a critical part of these terms. The “original sin” logic has long predicted that creditors have little appetite for developing-country government debt issued in domestic currency. Our novel data, including bond issues by 131 countries in 240,000 primary market transactions between 1990 and 2016, suggest otherwise. Domestic-denominated bonds have come to dominate the market, although domestic-currency issuance often is accompanied by shorter bond maturities. We argue that ideologically rooted policy preferences play an important role in this unexpected trend in denomination. All else equal, right governments choose foreign denomination as a means of mitigating currency risk and thus minimizing borrowing costs. In contrast, left governments opt for the flexibility of domestic denomination, and they are better able to act on their preferences in the presence of risk-mitigating monetary institutions and macroeconomic stability. We find support for our argument that partisanship has a robust and enduring relationship with denomination outcomes, even in a marketplace in which domestic-denominated developing-country sovereign bonds have become the norm.

Bacterial pathogens isolated from currency notes circulating amongst live-bird marketers in Damaturu and Potiskum, Yobe State, Nigeria

Bacterial contamination of currency notes is of veterinary and public health importance because contaminated notes could serve as vector for the spread of pathogenic and perhaps multidrug resistant bacteria. The aim of this study was to assess the antibiotic susceptibility profile of bacterial contaminants found in various denominations of the Nigerian currency circulating among live-bird vendors in Yobe State, Nigeria. Three hundred and twenty (320) currency notes of all denominations were collected from the marketers for investigation. All samples were screened for bacterial pathogens according to standard techniques. The disc diffusion method was used to assess the antibiotic susceptibility of each of the isolated bacterial species against twelve antimicrobial drugs. The result showed that the higher denominations (N1000 - N100) were contaminated by Bacillus spp, (48.2 %), Eischerchiia coli ((13.5 %), Klebsiella spp (6.4 %) Pseudomonas aeruginosa (5.0%), Salmonella spp (0.7%), Coagulase positive Staphylococcus aureus (17.0%), and Streptococcus spp (9.2%) while the lower denominations (N50 - N5) were contaminated by Bacillus spp (37.1%), coagulase positive Staphylococcus aureus (19.1%,), E. coli (14.6 %), Klebsiella spp (5.1 %), P. aeruginosa (6.7%), Salmonella spp (7.3%) and Streptococcus spp (10.1%). All the isolated bacteria were resistant to ampicillin, oxacillin, amoxicillin, and tetracycline. Ciprofloxacin had the greatest activity followed by nitrofurantoin, neomycin, gentamicin, chloramphenicol and streptomycin. The present study revealed that Naira notes circulating among live-bird marketers were contaminated by pathogenic bacteria. It is recommended that live-bird traders should observe strict personal and environmental hygiene while engaging in their daily transaction to forestall any public health threat that may arise from transmission of disease pathogens from the legal tender of transaction in the market.

Forecasting Currency in East Java: Classical Time Series vs. Machine Learning

Most research about the inflow and outflow currency in Indonesia showed that these data contained both linear and nonlinear patterns with calendar variation effect. The goal of this research is to propose a hybrid model by combining ARIMAX and Deep Neural Network (DNN), known as hybrid ARIMAX-DNN, for improving the forecast accuracy in the currency prediction in East Java, Indonesia. ARIMAX is class of classical time series models that could accurately handle linear pattern and calendar variation effect. Whereas, DNN is known as a machine learning method that powerful to tackle a nonlinear pattern. Data about 32 denominations of inflow and outflow currency in East Java are used as case studies. The best model was selected based on the smallest value of RMSE and sMAPE at the testing dataset. The results showed that the hybrid ARIMAX-DNN model improved the forecast accuracy and outperformed the individual models, both ARIMAX and DNN, at 26 denominations of inflow and outflow currency. Hence, it can be concluded that hybrid classical time series and machine learning methods tend to yield more accurate forecasts than individual models, both classical time series and machine learning methods.

WHO MOVES WESTERN EUROPE STOCK MARKETS?

This paper focuses on short- and long-term causal relationship on six major Stock Exchanges in Western Europe which actively traded, while also considering the interaction with US Stock Exchange. The observation period is separated into 3 sub-samples to represent the pre-crisis period, crisis period, and post-crisis period; while the author also distinguishes between local currency and USD denominations in stock closing price. Conversion of local currency in USD denominations shows an effect on increasing the inter-dependence shown in the pre-crisis observation while tested using Johansen test. In the whole-period sample, Belgium, Germany, and the US should be considered as dominant country to granger cause the other Western Europe. Long-term relationships were also tested by granger causality showing different characteristics in each sub-sample. Finally, Italy is the most sensitive country in the response to other Western European countries innovations while tested by Generalized Impulse Response Analysis.

Global corporate debt during crises: Implications of switching borrowing across markets

This paper shows how crises prompted firms to switch borrowing across debt markets, impacting the amount borrowed, maturity, and currency denomination at the firm and aggregate levels. During financial crises, firms from advanced and emerging economies shifted their issuance activity between domestic and international syndicated loans and corporate bonds. Firms increased their borrowing in markets not directly hit by crises, partly compensating for declines in shock-hit markets, which provides evidence of market-specific credit supply shocks. As firms moved away from the markets in crisis and borrowed elsewhere, they maintained their borrowing maturity and changed their currency denomination. Changes occurred not only within firms, but also in the composition of issuing firms. The number of borrowing firms declined in crisis-hit markets and increased elsewhere. Mostly large firms issued during crises and switched markets. Overall, the debt dynamics obtained from studying jointly different debt markets differ from those observed in individual markets.

Effect of demonetization on microfinance industry in India

High-value denomination currency was scrapped off from the Indian economy on 8th November 2016, Rs. 500 and Rs. 1,000 currency notes were declared invalid at midnight hour. Taking such a bold step by Hon. Prime Minister of India Mr. Narendra Modi, means declaring 86% of cash in circulation an illegal tender overnight. This study is conducted on the immediate effect of demonetization on the microfinance industry in India and its after-effects in the later years. We have analyzed the data collected from the rural sector, on the collections and lending, impact on the farmers, how it has affected the small microfinance companies. We have also analyzed RBI’s initiative towards financial inclusion, Pradhan Mantri Jan Dhan Yojana (PMJDY), the emergence of new Small Finance Banks, Digital Banks, Payment banks, etc. We have critically analyzed the impact of cost versus the benefit from the demonetization exercise for the rural and microfinance industry. The aim of this study is to analyze the overall financial inclusion of the rural and small sectors towards the dream of a Cashless Economy.

How expected inflation distorts the current account and the valuation effect

We show that the current account balance (CA) is systematically distorted by an inflation effect, which arises because income on debt is recorded as nominal interest in the currency of denomination. Since nominal interest includes compensations for expected inflation, increases in the latter must impact the CA. Guided by the relevant international accounting rules, we impute the inflation effect for 50 economies between 1991 and 2017. When adjusting for the inflation effect, the absolute value of yearly CAs drops by 0.13% of GDP on average. Over the full period, the reduction is a sizable 22.85% of initial GDP for the average country (26.4% for the U.S.). As the flip side of the CA distortions, the inflation effect contributes systematically to the well-known valuation effect of net foreign assets. For the average country, the inflation effect accounts for a twelfth of the valuation effect, for the U.S., it accounts for well over a half.

외환파생상품과 외화표시부채의 사용이 기업가치에 미치는 영향 : 중국 자동차 부품제조기업을 대상으로

외환파생상품과 외화표시부채의 사용이 기업가치에 미치는 영향 : 중국 자동차 부품제조기업을 대상으로

Exchange Rate Regimes in the ASEAN: Would a Currency Union Outperform the Independent Managed Floating Regimes?

This paper compares the macroeconomic and welfare performances of the currency union against those from the independent managed floating regime using a two open-country DSGE model with the foreign currency denomination of private debt. The model is calibrated on the average data from the five founding members of the ASEAN and the performance of regimes is assessed under the effects of supply and demand shocks. We find that the macroeconomic and welfare performances of the ASEAN economies under the independent managed floating regimes are comparable to those under a currency union. This is explained by the stability of the intra-regional nominal exchange rates arising from the similarity of policy rules under the independent managed floating regimes. Our findings suggest that the choice of exchange rate targeting regimes with coordinated policies for the ASEAN countries would be an effective way to move towards a currency union.

Fickle Emerging Market Flows, Stable Euros, and the Dollar Risk Factor

Policymakers fear the potentially destabilizing impact of fickle global investors on emerging markets. Euro area investors are significant participants in emerging bond markets and exhibit volatile flows, but their fickleness does not result in indiscriminate periods of surge and flight. Instead, we find differentiation across emerging market bonds based on currency denomination and issuer-level risk factors. First, euro area investors exhibit a strong home currency bias that manifests itself both as a cross-sectional preference and in the form of relatively stable flows to Euro-denominated bonds over time. Second, volatile flows to USD and local-currency denominated bonds are most robustly related to fluctuations in the broad dollar exchange rate. Attempts to explain the dollar factor yield modest evidence for a balance sheet mechanism, and, consistent with a broader risk appetite channel, we find flows to bonds with lower credit ratings and higher yield spreads are more sensitive to USD fluctuations.

Forecasting Inflow and Outflow of Currency in Central Java using ARIMAX, RBFN and Hybrid ARIMAX-RBFN

This research aims to forecast the inflow and outflow currency in Central Java. Inflow and outflow data contained both non-linear and linear patterns with calendar variation effects. Calendar variation model based on ARIMAX as a linear model, Radial Basis Function Network (RBFN) as a non-linear model, and hybrid ARIMAX-RBFN as a combination linear and non-linear model are used to forecast inflow and outflow of currency in Central Java. The data used in this research consists of inflow and outflow of currency in Central Java from January 2010 until June 2019. The denomination used is 32 denominations of inflow and 32 denominations of outflow currency. RMSE and sMAPE values from the out-of-sample data are used to select the best model. The results show that hybrid ARIMAX-RBFN is the best model of 19 denominations of inflow currency and 22 denominations of outflow. In general, the hybrid model tends to provide a more accurate forecast than the individual forecasting model used in this research.