polymer banknotes

Polymer banknotes are banknotes made from a synthetic polymer such as biaxially oriented polypropylene (BOPP). Such notes incorporate many security features not available in paper banknotes, including the use of metameric inks. Polymer banknotes last significantly longer than paper notes, causing a decrease in environmental impact and a reduced cost of production and replacement. Modern polymer banknotes were developed by the Reserve Bank of Australia (RBA), Commonwealth Scientific and Industrial Research Organisation (CSIRO) and The University of Melbourne. They were first issued as currency in Australia during 1988 (coinciding with Australia's bicentennial year); by 1996, the Australian dollar was switched completely to polymer banknotes. Romania was the first country in Europe to issue a plastic note in 1999 and became the third country after Australia and New Zealand to fully convert to polymer by 2003.

Other currencies that have been switched completely to polymer banknotes include: the Vietnamese đồng (2006) although this is only applied to banknotes with denominations above 5,000 đồng, the Brunei dollar (2006), the Nigerian Naira (2007), the Papua New Guinean kina (2008), the Canadian dollar (2013), the Maldivian rufiyaa (2017), the Mauritanian ouguiya (2017), the Nicaraguan córdoba (2017), the Vanuatu vatu (2017), the Eastern Caribbean dollar (2019), the Pound Sterling (2021) and the Barbadian dollar (2022). Several countries and regions have introduced polymer banknotes into commemorative or general circulation, including: Nigeria, Cape Verde, Chile, The Gambia, Trinidad and Tobago, Vietnam, Mexico, Taiwan, Singapore, Malaysia, Botswana, São Tomé and Príncipe, North Macedonia, Russia, Solomon Islands, Samoa, Morocco, Albania, Sri Lanka, Hong Kong, Israel, China, Kuwait, Mozambique, Saudi Arabia, Isle of Man, Guatemala, Haiti, Jamaica, Libya, Mauritius, Costa Rica, Honduras, Angola, Namibia, Lebanon, the Philippines, Egypt, the United Arab Emirates, Samoa, Thailand and Bermuda.

History

In the 1980s, Canadian engineering company AGRA Vadeko and US chemical company US Mobil Chemical Company developed a polymer substrate trademarked as DuraNote. It had been tested by the Bank of Canada in the 1980s and 1990s; test C$ 20 and C$ 50 banknotes were auctioned in October 2012. It was also tested by the Bureau of Engraving and Printing of the United States Department of the Treasury in 1997 and 1998, when 40,000 test banknotes were printed and evaluated; and was evaluated by the central banks of 28 countries.

Security features

Polymer banknotes usually have three levels of security devices. Primary security devices are easily recognisable by consumers and may include intaglio, metal strips, and the clear areas of the banknote. Secondary security devices are detectable by a machine. Tertiary security devices may only be detectable by the issuing authority when a banknote is returned.

Adoption

Modern polymer banknotes were first developed by the Reserve Bank of Australia (RBA) and the Commonwealth Scientific and Industrial Research Organisation or CSIRO and first issued as currency in Australia during 1988, to coincide with Australia's bicentennial year.

In August 2012, Nigeria's Central Bank attempted the switch back from polymer to paper banknotes, saying there were "significant difficulties associated with the processing and destruction of the polymer banknotes" which had "constrained the realisation of the benefits expected from polymer banknotes over paper notes". However, President Goodluck Jonathan halted the process in September 2012.

The polymer notes in the Republic of Mauritius are available in values of , , and , Recently in December 2024, the Bank of Mauritius has announced that there will be issues of Rs 100, Rs 200, and Rs 1000 banknotes. The Fiji was issued in April 2013.

In the United Kingdom, the first polymer banknotes were issued by the Northern Bank in Northern Ireland in 2000; these were a special commemorative issue bearing an image of the Space Shuttle.Although the £5 Northern Bank polymer banknote was a one-off commemorative issued, unconventionally, in portrait orientation to mark the year 2000, it was in general circulation, with normal serial numbers (the commemorative version has serial numbers beginning with "Y2K", normal versions with "MM"). It is the only Northern Bank note in circulation which was not affected by the recall of all the bank's notes as a result of the 26.5 million pound raid on its Belfast headquarters on 20 December 2004. In March 2015, the Clydesdale Bank in Scotland began to issue polymer Sterling £5 notes marking the 125th anniversary of the building of the Forth Bridge. These were the first polymer notes to enter general circulation in the UK. The Royal Bank of Scotland followed in 2016 with a new issue of plastic £5 notes illustrated with a picture of author Nan Shepherd. In September 2016, the Bank of England began to issue £5 polymer notes with a picture of Winston Churchill; and in 2017 a polymer £10 began replacing its paper equivalent, featuring a picture of the author Jane Austen. A polymer £20 was issued in 2020 with a picture of J.M.W. Turner, and the £50 note was released in 2021, featuring Alan Turing. Although the polymer Bank of England notes are 15% smaller than the older, paper issue, they bear a similar design. Some businesses operating in the UK cash industry have opposed the switch to polymer, citing a lack of research into the cost impact of its introduction. In December 2022, following the death of Queen Elizabeth II, the Bank of England unveiled the design of a new series of banknotes featuring King Charles III. The rest of the design, however, is unchanged, with the exception of a slight alteration in colour.

In the Philippines, it was proposed in 2009 to shift to the usage of polymer for Philippine peso banknotes. This did not push through due to concern the shift would have over the impact to country's abaca industry. The proposal was revived in 2021 during the COVID-19 pandemic since the polymer banknotes can be sanitized with less damage compared to paper banknotes, as well as other reasons such as durability, lesser average issue cost, and lesser susceptibility to counterfeiting. In April 2022, The Bangko Sentral ng Pilipinas officially released the 1000 peso bill polymer bank note into circulation. In December 2024, the BSP (Central Bank of the Philippines) has announced that they will be issuing polymer notes in the denominations of 500, 100, and 50 pesos in the first quarter of 2025.

Despite having the updated logo and the updated signature of the current president, there are no plans for a 20 peso polymer note due to it being slowly shifted into becoming a coin. There are also no plans for a 200 peso polymer banknote due to low demand.

See also

* Banknotes of the Australian dollar
* Banknotes of the Canadian dollar
* Banknotes of the New Zealand dollar
* CSIRO
* Hybrid Paper Polymer Banknote
* Polymers

Notes

References

External links

PolymerNotes.org
by Stane Štraus


from the University of Melbourne

Professor David Solomon – Inventor of Plastic Bank Note Wins 2006 Victoria Prize
from the University of Melbourne

Polymer banknotes
from Commonwealth Scientific and Industrial Research Organisation

Note Printing Australia

innoviasecurity.com

PolymerNotes.de
(in German) by Thomas Krause

New Kuwaiti Dinar notes released
by Kuwait News Agency.

Costs of introducing polymer notes in the UK
by CMS Payments Intelligence.

{{Portal bar, Numismatics

Australian inventions
Banknotes
Polymers
Currencies introduced in 1988