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RBNZ releases Brighter Money designs

Date 20 November

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year.

The Bank today also launched a Brightermoney.co.nz website which contains basic information about the notes and the wider upgrade project. It will be progressively updated over time, and it will eventually become a one-stop-shop for industry players, retailers and the public to up-skill themselves about the new notes.

In a speech, Reserve Bank Deputy Governor Geoff Bascand said designs and printing techniques have advanced significantly since the current banknotes were released in 1999, and demand for cash continues to increase.

The new designs still feature the same well-respected individuals and flora and fauna as the current banknotes.

“Our Brighter Money doesn’t just celebrate innovation and the pioneering New Zealand spirit through the images depicted on the banknotes - the notes themselves are at the forefront of banknote technology,” Mr Bascand said.

“Our new notes contain more sophisticated security features that greatly enhance the overall design. The transparent windows are larger, and striking holographic features will help to make the notes very easy to verify, but hard to counterfeit. Counterfeit rates are low in New Zealand compared to the rest of the world, but technology changes are making it easier and we need to stay ahead of the game.”

The new notes will be released progressively. The target date for the release of the $5 and $10 notes is October 2015, and the target date for the release of the $20, $50 and $100 is April 2016.

Both the current notes and new notes will circulate together and both sets will be legal tender.

“The Reserve Bank will withdraw the old series notes from circulation naturally as the banks return them to us. Our note circulation and distribution strategy has been designed in consultation with industry, and it represents a ‘business-as-usual’ approach which should minimise the additional costs of introducing new notes,” Mr Bascand said.

The Reserve Bank will continue to work closely with banks, manufacturers of bank-note-handling equipment and retailers to ensure a smooth transition to the new notes.

A public awareness campaign will be run closer to the times the notes are released.

Relevant links

• Brighter Money website

• Speech – ‘Brighter Money – enhancing innovation and embracing heritage’

• Questions and Answers about the new banknotes

• Banknote Upgrade Project

Banknote Upgrade Project Questions and Answers

Q. Why is the Reserve Bank upgrading our banknotes?

A. The Reserve Bank regularly reviews and improves New Zealand’s banknotes to ensure their security features are updated. With technology constantly evolving, it is important our banknotes keep up, to help ensure counterfeiting levels remain low. The current banknote designs were issued in the early 1990s, and revised slightly for the switch to a flexible polymer plastic in 1999.

Q. When will the new notes start circulating?

A. The new notes will be released progressively, by denomination. The target release date for the $5 and $10 is October 2015, with the $20, $50 and $100 likely released in April 2016. It may take a few weeks or months for you to see the new notes when they first enter circulation. The existing notes will remain in use after the new notes are introduced. Both the current series and new notes will be legal tender. The Reserve Bank expects it will take 12-18 months for the majority of notes in circulation to be new notes.

Q. What differences will we notice in the new notes?

A. The notes have a brighter, more modern look, with the note denomination shown in larger print and greater colour contrast between notes. The notes will feature more te reo Māori, and will contain more sophisticated security features that will greatly enhance the overall design. They will be the same sizes as the current notes and be made of the same flexible and durable plastic. For more information, and to see the designs, visit the Brighter Money website.

Q. What security features will be used?

A. The notes will continue to feature windows, as with the current notes. However, these will be more sophisticated and feature a greater level of both design and security. Several other additional security features will be added, including colour changing / optically variable features. More information about how to use the security features will be released as part of the public awareness campaign before the notes are released.

Q. Will my old currency still be useable when the new notes come in?

A. Yes. The existing notes will remain in use after the new notes are introduced. Both sets will be legal tender. This means banks and retailers will accept either set of notes, and may give both sets out as change.

Q. Who will design and print the new notes? Where will they be printed?

A. The design and print tender run by the Reserve Bank was won by the Canadian Bank Note Company (CBN). As a result, CBN will be responsible for both the design and the printing of the new banknotes. The notes will be printed at CBN’s plant in Ottawa, Canada. Find out more about CBN.

Q. How much will the whole upgrade cost?

A. The costs of regular banknote upgrades, which typically take place every 10 - 15 years, have to be balanced against increasing risks of counterfeiting as technology advances.

Of the approximately 148 million notes in circulation ($4.7 billion) we receive, process and re-issue over 140 million banknotes each year. We expect it will cost an extra $7-8 million per annum for the next five years to issue and distribute the new notes, and replace our reserve stocks.

While the cost of purchasing new notes over five years will be about $80 million, in the ordinary course of business we could have incurred costs printing the current notes. The additional costs, as a result of moving to a newer, more secure design, are about $40 million.

Q. What is involved in testing the new notes?

A. The banknotes will go through rigorous testing in a number of areas to ensure they are as robust, secure and durable as possible prior to release. This includes stress-testing to find potential areas of weakness in the design and printing, as well as testing with key stakeholders to ensure the new notes can be accommodated by businesses, retailers, banks and others key users such as banknote equipment manufacturers.

Q. Is counterfeiting an issue in New Zealand?

A. New Zealand has very low counterfeiting rates by international standards. However, in recent times the technology used for counterfeiting has improved and we need to strengthen our security features to combat this.

Q. What features will be used to help visually impaired people?

A. The new note design features larger, bolder print showing the note’s value. Greater colour contrast between notes has also been introduced, to help visually impaired people distinguish one note from another. Different denominations will still be of different sizes, to ensure the visually impaired can continue to tell one note from another.

Q. Will more Māori language be used on the notes?

A. New Zealand banknotes incorporate very little text. However, the new notes feature additional Māori language:

• Aotearoa - the Māori name for New Zealand
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• Te Pūtea Matua – the Reserve Bank of New Zealand’s Maori name
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• The names of the native birds on the reverse of the notes (hoiho, whio, kārearea, kōkako, mohua) will continue to be written in Māori.
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Q. Will the new banknotes work in ATMs and banknote equipment?

A. The Reserve Bank is working with manufacturers of banknote equipment to ensure they are well prepared for the changes, and the transition to the new notes is as seamless as possible. If you are a retailer with banknote equipment, please contact your supplier to ensure that they are participating in our calibration programme and check they have scheduled your machine calibrations.

Q. When will I find out more about the notes?

A. A public awareness and advertising campaign will be run when the notes are released and more information will be added the Brighter Money website. More detailed information about the new notes is also available on the Banknote Upgrade web page.

You can also sign up for Brighter Money email updates on the Reserve Bank’s email signup page.

Q. Will printed sets banknotes be available for numismatics?

A. We are still determining what collectable material will be available for public release when the notes are launched. More information will be made available closer to the time.

Q. I have a special interest in currency matters. Who can I contact to discuss my specific concerns or requirements around the change?

A. The Reserve Bank has a dedicated email address for such queries – newnotes@rbnz.govt.nz. Please note this is for individuals or groups with a specialist interest in, or concern about this project for operational or practical reasons.

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