1999 Management report: Curreny in circulation

By Central Bank of Brazil

The new polymer bank note

In 1999, Banco Central completed the final stages of the process to launch, in April, 2000, a new banknote of R$ 10.00, allusive of the 500 years of the Discovery of Brazil. The Brazilian people will have the opportunity to evaluate a peculiar kind of banknote, made of polymer—a plastic material—that in several countries has been used as a replacement for paper money—the traditional material made of cellulose and vegetable fibers.

Although every banknote costs more than the paper one, it can last much more. Thus, the annual manufacture of new banknotes to replace those worn out by use may be quite reduced. Additionally, the plastic banknotes may be recycled at the end of their useful life, and serve as raw material for a broad range of objects.

The use of plastic in banknotes also allows the inclusion of novel, hard to reproduce fakeproof elements, thus increasing the protection of the user against the action of counterfeiters.

Plastic banknotes have already been used since 1988. The experience with the use of this material has proven its resistance, durability and safety.

With the launching of the banknote to commemorate the 500 years since the Discovery of Brazil, Banco Central will analyze the behavior of the plastic banknotes in the Brazilian money supply, observing the following points:

• ease of handling;

• durability;

• robustness of the safety elements;

• performance in automated equipment that deal with banknotes;

• and acceptance by the public.