International Review on Cash Management

BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 1

INTERNATIONAL REVIEW ON CASH MANAGEMENT

YEAR VII ISSUE 14 OCTOBER 2013

Opinion 2 Editorial 3 Interview with Astrid Mitchell 6 Environmental impact management of banknote production and improvements Angelamaria Fiori. Banca d’Italia 8 Federal Reserve’s efforts to recycle shredded currency Shaun E. Ferrari. US Federal Reserve System 9 Burning banknote waste in a cement works Beatriz García. Banco de España 11 Environmentally conscious activities of the NPB Hitoshi Tanaka. National Printing Bureau, Japan 13 Anti-bacterial treatment of banknote paper Georgy Kornilov and Yelena Kurkova. Goznak 15 The FNMT’s paper manufacturing and the environment Antonio Olmos. FNMT-RCM 18 The carbon footprint of banknote security features Beat Attinger. Orell Füssli Security Printing Ltd 20 Incorporating diffractive optically variable devices in banknotes in an environmentally sustainable way Peter Muehlfelder. Leonard Kurz Stiftung & Co. KG 23 The “green” banknote. A holistic view Alfred Kraxenberger, Christoph Mengel and Alfred Schmidt. Louisenthal and Giesecke & Devrient GmbH 26 The polymer banknote: a reduction in environmental impact Jaime Pacreu. Innovia Security, S.A. de C.V. 29 Environmental impact management. Security inks for banknotes René Berger and Brigitte Sheung. SICPA, S.A.

Banknotes and Coins 32 The banknotes of Venezuela Jacquelín Bastardo. Banco Central de Venezuela 34 Treasury Department of the Banco Central de Reserva de El Salvador César Roney. Banco Central de Reserva de El Salvador 36 The Museum of the National Bank of Belgium Marianne Danneel. National Bank of Belgium 39 Guatemala’s Numismatic Museum Ricardo Martínez. Banco de Guatemala

Miscellaneous 41-43 9th International Course on Cash Management. BANCO meeting in Bratislava. The carbon footprint. Readers give their views on BILLETARIA. CPC BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 2

Opinion Editorial

some very interesting ideas, and a defence of cotton paper as the preferred choice of sub- Editorial strate from the environmental point of view. Jaime Pacreu opens up the field for debate by J. Darío Negueruela Banco de España offering an opposing view that advocates polymer for its advantages of over paper. Our thanks to everyone involved for the quality of When, almost a year ago, we decided to pre- their contributions, which have made this issue pare a thematic issue of BILLETARIA on the of BILLETARIA a unique collection of articles subject of the ecology, the environment and on a rarely addressed topic. All in all this issue caring for the planet, some of our colleagues includes eleven articles on the subject, which called us dreamers and said we were out of we have shortened to avoid the issue going step, and our friends gave us a kindly but further beyond the 40 pages we have set as bemused looks, while wishing us well. And our limit. We have also continued both our the truth is that there were times when we series on banknotes and central bank depart- wondered whether it would be possible to ments, and that on numismatic museums. bring together the contributors and content for a special issue on the topic. But the gen- This issue also includes another novelty, in this erosity of BILLETARIA’s friends has meant that case the “Interview” section where we talk to readers today have in their hands (or on the Astrid Mitchell, the editor of Currency News. screen of their PC or tablet) issue no. 14 of As readers will recall, in our previous issue we the review, with more pages than usual and published a piece about InterCrim-Press, the a standard of content that has beat our expec- leading Russian specialist publisher on cur- tations. And this is despite the fact that some rency matters, and with which we maintain a of our habitual contributors have not been able friendly and cooperative professional relation- to participate in this issue. ship. This concludes our series disseminating and supporting our peers in the currency pub- We have tried to cover the issue from a wide lications field, who we look upon as colleagues variety of angles. Three central banks explore rather than competitors. the subject from different viewpoints: that of the environmental policy of the Banca d’Italia’s The latest opinion survey aimed at BIL- printing works, a look at waste management LETARIA readers has showered us with praise at the Fed, and an enlightening article by Beat- and words of encouragement. And at the riz García at the Banco de España on the tech- same time, offered some guidance on future nical aspects of burning waste in a cement directions. In general, readers expressed a works. Japan’s National Printing Bureau also preference for shorter “Events” and “Miscel- discusses its environmental policy; Goznak laneous” sections; more thematic issues; wider presents a subject little-known in the banknote distribution of the electronic format of the world (the antibacterial treatment of paper); review, while keeping the quality of the paper; and the FNMT discusses the efforts its paper maintaining the rigorous but accessible tone; mill makes to be environmentally friendly. limiting contributions to their current length; SICPA, Kurz and Orell Füssli present manu- extending our geographical reach; vigorously facturers’ viewpoints on inks, holograms, and defending our editorial independence; and tak- other banknote-related products. And G&D ing care over the composition and graphics. presents an extensive article giving an overview Many thanks. See you again in issue 15 of “Architecture”. Stained glass window in the Banco de España of a responsible environmental policy, with BILLETARIA. building, Madrid / JDN

CONTRIBUTORS J. Darío Negueruela Director of the Cash and Issue Department. Banco de España / Astrid Mitchell Editor of Currency News. Reconnaissance International / Angelamaria Fiori Deputy Head of the Quality, Environment, Health and Safety Division. Banca d’Italia / Shaun E. Ferrari Assistant Director in the Reserve Bank Operations & Payment Systems Division. US Federal Reserve System / Beatriz García Unit Manager of the Regulation and Control. Banco de España / Hitoshi Tanaka General Manager of the Environmental Management Division. National Printing Bureau, Japan / Georgy Kornilov Director of the Research and Development Institute. Goznak / Yelena Kurkova Deputy Head of the Paper Technology Department. Goznak / Antonio Olmos Paper Mill Director. FNMT-RCM / Beat Attinger Director of Marketing & Sales. Orell Füssli Security Printing Ltd / Peter Muehlfelder Head of Business Area Security. Leonard Kurz Stiftung & Co. KG / Alfred Kraxenberger Managing Director, Technology and Innovation, Banknote Paper. Louisenthal / Christoph Mengel Head of Product Development, Banknote Printing. Giesecke & Devrient GmbH / Alfred Schmidt Product Management Director, Banknote Processing. Giesecke & Devrient GmbH / Jaime Pacreu General Manager. Innovia Security S.A. de C.V. / René Berger Head of Analysis and Product Conformity. SICPA, S.A. / Brigitte Sheung Marketing Editor. SICPA, S.A. / Jacquelín Bastardo Treasury Manager. Banco Central de Venezuela / César Roney Head of Treasury Department. Banco Central de Reserva de El Salvador / Marianne Danneel Curator. National Bank of Belgium / Ricardo Martínez Head of the Interinstitutional Relations and Culture Section. Banco de Guatemala / Yolanda Barrera Photographer.

2 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 3

Opinion Interview with Astrid Mitchell Interview with Astrid Mitchell

J. Darío Negueruela Banco de España

Astrid Mitchell is a director of ple of interviewing "retired cash professionals" that we have followed Reconnaissance International, when choosing the personalities to interview in the past, but flexibility on and the editor-in-chief of Cur- this point has more advantages than drawbacks, and our readers will no doubt be grateful. We would therefore like to thank Astrid for having rency News, one of the currency accepted our invitation and below we offer a summary of the extensive world's most important newslet- interview she gave us in which she passed on her views on a range of top- ters. Currency News, which is ical issues in the currency world. This lively and spontaneous interview, full produced through a joint ven- of insightful comments, offers a new and enlightening viewpoint on our ture with Currency Research, activity and on topics such as information on the Internet, the relationship has been published monthly for of trust between the publisher and the reader, and today's information overload, which we are sure will be of interest to our readers. Thank you the last ten years and is pro- Astrid, for your help and collaboration, and the whole Currency News duced in three languages: Eng- team for their willingness to collaborate with BILLETARIA. lish, Spanish, and Russian. Aimed at central banks, printers Q. You have been working for Reconnaissance International for more and the cash industry in general, it reports on the design, than ten years. Could you briefly explain your professional experi- specifications, manufacturing, sorting and distribution of ence at the company, and where Currency News fits within the banknotes and coins. It has a wide circulation in both hard organisation? copy and electronic format. A. I have been with Reconnaissance International (RIL) –publishers, con- After graduating in Political Science at the University of sultants and conference organisers– as a Director since 2002. My background is in the security printing and currency industry (with De La Rue, Durham, Astrid Mitchell started her career at De La Rue in OpSec and Bundesdruckerei). Shortly after I joined RIL, we decided to 1983, where she held positions in various areas before join- introduce a newsletter specifically for the currency market –banknote and ing OpSec Security Technologies as head of marketing. She coins– based on the company’s experience in publishing newsletters in later worked at Security Printing Systems and then Bun- other security-related sectors. Currency News was launched in January desdruckerei, from where she joined Reconnaissance in 2003 through a joint venture with Currency Research, owners of the 2002, for the creation and launch of Currency News in 2003. Currency Conference and the ICCOS events, and this year we are cele- brating our 10th anniversary. She is also the joint editor of other recent publications, such as Tax Stamp News (2009) and ID and Secure Document In addition to editing Currency News, I am also responsible or involved in News (2013), and contributes to Authentication News and RIL’s other publications and I am the Conference Director for the series of Holography News. She is the author of Tax Stamps. In addi- three annual regional High Security Printing Conferences, as well as the tion to her publishing activity, Astrid Mitchell is actively Coin Conference. involved in organising regional conferences on specialist Q. There is a large number of international congresses and meetings professional issues. For example, High Security Printing, the in which cash matters are dealt with. What is your opinion about Tax Stamp Forum and the Coin Conference. these forums?

BILLETARIA is aware of the important role it plays in the cash profession- A. Yes, there is a large number of events – one could spend all one’s time als community in gathering and disseminating ideas, plans and specific travelling to attend them all. But given that time seems to be in short sup- issues of concern to cash departments and banknote printers. But it also ply for just about everyone, you just have to be selective about which ones recognises the role played by other publications that, in their particular to attend. The fact that there are a number of events now points to the spheres and with their own unique features, also make an important con- vibrancy of the community and the demand for knowledge. Such events tribution to strengthening the ties between the members of the profession. are an excellent way of learning about the latest issues and meeting the key people in one place. While there may be a trend towards ‘virtual’ Just over a year ago we took the initiative to contact some of our main meetings, online webinars and the like, nothing beats face to face contact counterparts in the currency publications business with the idea of estab- and interaction –you just don’t get the same level of engagement when lishing collaborative ties. Each publication's unique personality clearly dif- you communicate remotely. ferentiates it, such that it is fairly safe to say the publications complement rather than compete with one another. Considering that this idea of col- Q. Do you think the distribution of publications on cash should be laboration might benefit our readers, we opened up our pages to an made only through Internet, in electronic format, or do you consider important contribution from InterCrim-press in issue 13 of BILLETARIA useful the physical distribution of publications in paper format? and we are now doing the same with Currency News, with an interview with its editor-in-chief, Astrid Mitchell. Some months back we mentioned A. We have debated long and hard about whether to stay with our current this new philosophy of collaboration proposed by BILLETARIA, and the model of distribution, or to move to electronic distribution, and even pro- idea of a possible interview arose. This represents a break with the princi- vide an internet news service. Our current view –informed by the wishes

BILLETARIA no 14 October 2013 3 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 4

Opinion Interview with Astrid Mitchell

and feedback from our subscribers– is that, for Currency News at least, the majority still prefer to receive the physical copy. There are some, however, that prefer to receive a digital version, and we also offer that option, in selected cases at least. But there is an issue, for us, with electronic copies so we do not offer this universally. The issue is that it can be very difficult to control the distribution of pdfs –they are so much easier to dis- seminate than hard copies– particularly if appropriate digital rights management tools aren’t put in place. And that is an issue for us because we provide a guarantee that we know our subscribers and that Currency News is only distributed to those with a legitimate interest in currency. It is because of this that central banks, suppliers, governments etc are prepared to talk to us. If we lose control of the distribution, then we would lose this trust.

As for the internet, in our opinion, distribution of information via this medium is too immediate. That might sound strange given that the whole point of news is that it is recent and topical. But there is a huge amount of infor- Banknote 2012 / AM mation circulating and it is possible that this can be taken out of context, sible roles performed by Asia, America and Africa on cash manage- misinterpreted or simply inaccurate –particularly by the general media ment or banknote production in the near future? which doesn’t understand currency. This is partly as a consequence of the 24/7 news cycle, and the need to fill this. But it doesn’t allow time for A. Historically, developments have been driven largely by Europe and information to be checked, verified and put in context. Producing a North America. But we have already seen the emergence of thriving cur- newsletter like we do does allow that time –which, given the sensitivity and rency sectors in CIS (Commonwealth of Indepenent States) countries and security of the information we deal in, is critically important. Asia. These greographical areas are becoming increasingly dynamic centres for production and innovation. Latin America is now emerging as a Furthermore, the problem these days is not too little information, it is too real powerhouse and it will be Africa’s turn too in the not too distant future. much information. So what we also do is to provide a ‘filter’ in drawing out The one thing about currency is that it is universal –the needs and require- what is relevant, thereby saving our subscribers the time and effort of ments are broadly the same for small and large, developed and develop- researching, filtering and analysing themselves the huge amount of news ing countries alike. Despite what some people may say, cash is likely to that is available. play an important part in economic activity for the foreseeable future. This is a powerful incentive for investment, which is already happening in many Q. Central banks, other public entities and private companies are countries that have until now relied on external suppliers, but which are all involved in cash management. Do you think that it is possible to increasingly looking to become self-sufficient, or to look for more region- find a “marriage of convenience” between public and private insti- ally-aligned suppliers and partners. tutions aimed at more efficient cash management for society as a whole? Q. Given the wide information you collect and publish in Currency News from different manufacturers and suppliers of banknotes and A. I don’t think it makes much difference whether the organizations security features, which key factors would you highlight in improving involved are public or private. There is a line of thinking that private com- the security of banknotes? panies are inherently more efficient and faster to innovate, and that they are the ones that drive change and efficiencies. But the distinction A. The security of banknotes needs to be integrated with overall design. between private and public is being blurred through the adoption of com- With overt features for the public, the importance of feature selection and the mercial thinking and practices within the public sector. design of such features into the banknotes cannot be overstated. A huge number of security features have been developed in recent years –with per- I would, however, make two exceptions to this. One is that, on the cur- haps less attention paid to how these co-exist and how they are used, and rency supply side, some government-owned institutions have attempted recognized, by the public. This situation is changing now, with a lot of work to enter the commercial market, with unfortunate results. This can lead to being done in the area of public perception, with some surprising results. the creation of an unfair market as such companies aren’t bound by the Even the most innovative features are pointless if they can’t be easily iden- commercial needs of the private sector, and they also aren’t familiar with tified. So ensuring that the features in banknotes have technical merit and the intricacies of meeting customer needs. complexity (as a deterrent to counterfeiters) while being simple to validate and communicate is key to maintaining and improving security. The other is that, on the issue side, the move towards privatization or out- sourcing can be problematic since the private sector does not have the Q. BILLETARIA 14 is devoted to the environmental aspects related to same interest as public bodies in the benefits to society of cash. banknotes. Do you think that this matter is important in the field of banknote production in all countries? But putting such comments to one side, in principle more efficient cash management should be driven by all stakeholders in the cash cycle. The A. It depends on the country. Some are more aware and advanced than result should be the same either way –a real focus on driving improve- others, but it is still true to say that environmental issues can be viewed as ments and efficiencies– regardless of the status of ownership of the something of a luxury in the context of the different competing require- organizations in question. ments for cash (durability, security, cost etc). However environmental awareness is becoming more important globally, and there will come a Q. Do you believe that in the forthcoming decades the major time when governments will be obliged to take the necessary steps to changes on the production of banknotes and cash management, to minimise the environmental impact of currency –whether this relates to its mark the agendas of discussion in international forums, will come production, its destruction and all stages in between. Those countries, from Asia, America and Africa? What is your opinion about the pos- and those companies, that are already building such measures into the

4 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 5

Opinion Interview with Astrid Mitchell

production and distribution process will have an advantage when such processes and drive costs out of the system. This will require, first and legislation is introduced. foremost, interoperability backed up by common protocols and standards, and such suppliers will have to put aside their competitive differ- Q. In the battle on the future use of payment instruments: banknote ences and co-operate to make this happen. Let’s hope that they are up versus electronic means of payment, is there any future for bank- to the challenge. notes? Q. What would you say to somebody young starting out his/her A. Yes. People have been anticipating the demise of cash for as long as I career in a central bank cash department or in a cash handling can remember but it hasn’t happened and I don’t believe it ever will, not department of the private sector? in our lifetime at any rate. There are simply too many advantages to cash that cannot be provided by cashless alternatives (and, admittedly, vice A. Look, listen and learn. As I said earlier, cash is universal. There may versa). People want choice –and as long as they continue to be offered a be plenty of circumstances specific to individual countries or regions in choice, they will exercise that choice in favour of cash– as and when it terms of climate, conditions of use, custom and practice, regulation, lev- suits them. els of automation and so forth, but at the end of the day, a banknote is a banknote whether it is being used in Bogota or Bangkok. There is a In the meantime, however, the currency sector could do more to help the common interest throughout the world in how banknotes are best case for cash. There is a large amount of information/misinformation being designed, produced, issued and managed in circulation. But also a ten- put about by advocates of cashless payments (primarily the large payment dency for some countries to act in isolation, and to ‘reinvent the wheel’. organisations with equally large advertising and promotional budgets). There should be no need for this –what works in one country is likely to Those involved in currency tend to keep a much lower profile, but unless work equally well in others. People starting out in cash management can the industry is prepared to collectively make the case for cash, then the learn from finding out how others do it. That is probably the best train- constant feed of negative propaganda about cash may start to take hold. ing they could have. I realise the central banks cannot be involved in this, as they are neutral on matter of payments, but there is a large industry that could, and Q. Astrid, sorry to finish with a compromising question, are you a should, be doing more both to rebuff this negative propaganda, and to BILLETARIA reader? What do you think about the review? In your promote a positive message. opinion, what could we improve as a publication aimed at the central banking community and professional cash handlers? Q. In your opinion, is there any remarkable challenge for production or handling of banknotes that will mark the forthcoming decade? A. I always look forward to receiving BILLETARIA. Part of that, admittedly, is editorial ‘pride’. I check first to see if there is anything in there you A. There was a ‘game-changer’ in the cash cycle with the advent of ATMs have covered which we missed. I hate it when that happens! which have now become the most important point of cash distribution in many countries. I doubt whether cash would still be so popular today if it But I value the content and, in particular, the depth you are able to pro- wasn’t for the convenience that ATMs provide in terms of access to cash vide on particular issues, with a specific focus on the central banking com- around the world. munity. We can’t provide that level of depth in Currency News –it is international in scope and covers all aspects of currency (production and This, however, relates only to one side of the equation –namely ‘cash out’. issue, for banknotes and coins) in just 16 pages per month– and that is There needs to be a similar game-changer for ‘cash in’ –facilitating the way we intend to keep it. But to make a media analogy, Currency deposits, reducing the costs of transport and processing, as well as News is more akin to a daily newspaper, while BILLETARIA is more like a speeding up the reconciliation of deposits to customers’ accounts. There learned periodical. I always read the daily newspaper, but this doesn’t pre- is unlikely to be one single event, as with the development of the ATM, vent me from reading things in more depth as well on a more occasional that will address all these issues, but rather a series of smaller break- basis. In that sense, Currency News and BILLETARIA complement one throughs. This is beginning to happen, but will only really take effect when another. I would certainly recommend to the central banking community the providers of the different solutions work together to streamline and professional cash handlers that they read both.

Q. Finally, from your time and experience as Editor in Reconnaissance International, do you have any anecdotes you would like to share with the BIL- LETARIA readers?

A. When we did our research –due diligence if you like– prior to launching Currency News, the answer came back loud and clear that we shouldn’t do it –not enough information, and organisations would not be willing to share such data as there was. Our intuition said otherwise, however, so we went ahead anyway. Whether this feedback was just wrong, or whether we happened to launch Currency News at the right time in terms of changes in industry thinking, I don’t know. All I can say is that we have never been short of material –quite the opposite– and we really struggle each month to fit everything in, and provide the right balance between the different parts of the sector. The lesson for us was ‘follow your instinct’. That may not be a good lesson for Astrid Mitchell at an international conference / AM business in general, but it certainly worked for us!

BILLETARIA no 14 October 2013 5 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 6

Opinion Environmental impact management of bank note production and improvements Environmental impact management of banknote production and improvements

Angelamaria Fiori Banca d’Italia

The environment is affected by manufacturing activities such as bank note production in various ways. The issuance of Euro bank notes is one of the Eurosystem’s institutional tasks and improving environmental quality, as a contribution to raising living standards, is an EU mission laid down in the founding treaties. Consequently, environmental management in the specific field of bank note production has recently become part of a common ECB framework for all manufacturing sites involved in euro bank - note production.

With regard to the process of euro bank note production, this article focuses on significant environmental aspects and impacts1 of a bank note printing works, and their management and improvement at the premises of the Bank note printing Department of Banca d’Italia.

I. Environmental analysis auxiliary processes, which are taken into account in our EMS, have been omitted here for the sake of brevity. The Banca d’Italia Printing Department is located in Rome, in the heart of the city close to shopping streets and schools. The building was designed The Banca d’Italia environmental aspect/impact analysis relies on a by Pierluigi Nervi, a renowned Italian engineer and architect, during the detailed evaluation where each process is split up into single activities (for 1960s and, so far, no major structural changes have taken place. The example, printing activity is split into offset, silkscreen, intaglio, foil appli- building is set in a large green space owned by Banca d’Italia, which it cation, numbering, flexographic varnishing), and the significance of all the shares with a sport centre for employees and a kindergarten. The site is aspects of each activity are evaluated by taking into account: also crossed by a Roman aqueduct and a recently restored Roman road. The beauty of its surroundings continuously reminds us of the importance quantitative data (i.e. consumption data, weight of produced waste, vol- of doing our utmost to preserve the environment. ■ ume of discharged wastewater);

As part of its long-term efforts to develop environment safeguards, in the obligation to fulfil legal limits (corresponding to a positive, additional 2004 the Banca d’Italia Printing Department made a formal commitment ■ contribution to the resulting impact); to integrate the well-established Quality Management System (QMS) with an Environmental Management System (EMS). It subsequently obtained the presence of recycle/reuse/protection systems (negative contribu- certification to the ISO 14001 standard. ■ tion;

The standard’s systematic approach, based on the same principle as the the technical feasibility of impact reduction (positive contribution). ISO 9001 standard, requires an initial environmental analysis to identify the ■ significant environmental aspects and the corresponding impacts. This analysis, which is periodically updated, quantifies the organisation’s environmental performance and underpins its process of continual improvement.

Table 1 lists the most important environmental aspects of a bank note printing works associated with our main processes. Note that some other

1. “Environmental aspect” and “environmental impact” are used according to the definition of ISO 14001 standard: 1. – environmental aspect: element of an organisation’s activities that can interact with the environment, 1. – environmental impact: any change of the environment resulting from an organisation’s environmental aspects. Banco d’Italia bank note Printing Works / BdI

6 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 7

Opinion Environmental impact management of bank note production and improvements

Table 1. Significant environmental aspects of Banca d’Italia bank note printing works According to the family of ISO 14000 standards, significance is Processes Significant aspects not an absolute concept and what is significant for one organisation Production processes may not be significant for another, Pre-press activities: Consumption of electricity and natural gas, water consumption, production but, in order to give an example of Offset plate making of wastes (exhausted developer and fixer solutions etc.), air emissions. our evaluation, the graphs show a Pre-press activities: Consumption of electricity and natural gas, water consumption, production representation of the relative magni- Intaglio plate making of wastes, wastewater (diluted heavy metal solutions), air emissions. tude of some environmental Printing activities: Consumption of electricity and natural gas, water consumption, production aspects with respect to our main Offset, Intaglio, Silkscreen, of wastes (exhausted solvents, contaminated wiping cloths, etc.), wastewater processes. Numbering, Varnishing (exhausted fountain solution, exhausted wiping solution), air emissions. As might be expected, printing Cutting, sorting, finishing Consumption of electricity and natural gas, water consumption, production of wastes (unfit, shredded bank notes), air emissions. activities account for most of the total environmental impact for all Auxiliary processes aspects. Machine maintenance Consumption of electricity and natural gas, production of wastes (exhausted lubricant oil etc.). As for waste, so as to better Wastewater plant management Consumption of electricity and natural gas, water consumption, production of understand other contributions, wastes (sludges etc.), air emissions. the impact of shredded banknotes has been isolated. Shredded bank notes represent the most Correction factors may be added on a case-by-case basis to account for abundant waste produced in our printing works (up to 60% of the total differences due to the specificity of the aspect analysed; for example, waste weight) but its impact is limited due to its nature (non-hazardous) dealing with waste, we take into account the different nature of waste itself and to the kind of treatment it undergoes (combustion with energy (hazardous / non-hazardous) or the kind of treatment this waste is des- recovery). tined for (recycling, recovery treatment or landfill disposal). Again, in dealing with wastewater, we consider the kind of dissolved pollutants (heavy The second largest waste stream comprises sludge from wastewater metals or biodegradable organic substances) differently. These results, in treatment. This is due to the fact that almost all exhausted aqueous solu- numerical form (the higher, the more significant), are compared on a com- tions derived from production processes (galvanic wastewaters, exhaust- mon scale where a threshold is set to identify those aspects that require ed fountain solution from offset printing, exhausted water solutions from improvement. The Environmental Improvement Programme’s targets are poly-chablon and dry offset plate making) are treated at the wastewater set based on these inputs. plant.

Environmental impact. Relative magnitudes (three-year average)

Waste production Air emissions Water consumption Natural gas consumption

5% 15% 12% 22% 26% 17% 29% 9% 6% 31% 47% 9% 10% 12% 26% 30% 12% 10% 23% 18% 10% 10% 11%

Electricity consumption Waste Air Water Electricity Natural gas production emissions consumption consumption consumption

Printing 22 % 29 % 31 % 52 % 47 % 11% Cutting and ﬁnishing 10 % 23 % 18 % 12 % 11 % 8% Pre-press activities - intaglio plate making 10 % 26 % 30 % 11 % 12 % 6% Pre-press activities - offset plate making 10 % 0% 6%6% 9% 52% Machine maintenance 10 % 17 % 0% 8% 9% 11% Wastewater plant management 12 % 5% 0%11 % 12 % 12% Shredded banknotes 26 % 0%0% 0% 0%

BILLETARIA no 14 October 2013 7 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 8

Opinion Environmental impact management of bank note production and improvements

Furthermore, the graphs show, a significant part of all environmental Table 2. Environmental aspects and affecting sources aspects is attributed to intaglio plate-making. This assessment is due to the dangerous nature of the heavy metals used to produce these Environmental aspects Affecting source plates (nickel salts and, as long as they have been used, chromium (VI) salts). Consumption of electricity and – Bank note production natural gas, water consumption – Structural characteristics of production site II. Improvement of environmental impacts Production of wastes, (ink residues, – Bank note production exhausted solvents, sludges, etc.) – Process technology As for the improvement strategy, in Table 2 we report environmental impacts in connection with their own source. Except for the non-reducible Production of wastewaters – Bank note production consumption due to the quantity of bank notes allocated by ECB to Banca – Process technology d’Italia, it is feasible to reduce all impacts by means of ad hoc interventions Air emissions – Bank note production on the corresponding source: structural characteristics of the site and process technology. In what follows, we describe some of the major improvement initiatives of both kinds.

Since 2007, structural modification of the building and of all plants not ■ directly related to bank note production have been the responsibility of the Property Department, whose duty is to handle the general and technical administration of all property owned by Banca d’Italia. Even though external to our EMS, these activities are in some cases very important for overall environmental performance and so, over the years, more and more effort has been devoted to the management of indirect aspects. In order to improve their awareness, we usually involve people from the Property Department in environmental training activities, internal audits and third- party audit by the Certification Authority. As a result of a growing pro-

active attitude, a photovoltaic plant has just been installed on top of our Wastewater treatment plant at the Banco d’Italia Printing Works / BdI building, which will positively affect the next environmental aspect/impact evaluation. (continue on page 42)

Federal Reserve’s efforts to recycle shredded currency

Shaun E. Ferrari US Federal Reserve System

Federal Reserve Banks shred more than 5,000 tons of currency each Other offices are working with local companies to use the currency year. Over the past several years, the United States Federal Reserve residue in eco-friendly power-generation plants and as component mate- has made considerable progress in increasing the amount of the shred- rial to create a variety of products, including fuel pellets and energy for ded currency that it recycles. In 2013, Federal Reserve cash offices paper mills. Companies are also turning shreds into a home insulation recycled nearly 87 percent of shredded currency. Reserve Banks product that uses renewable cellulose as an alternative to fibreglass. diverted approximately 4,350 tons of shreds from landfill this year, Other partnerships are repurposing the shreds into tables, countertops, which represents almost a 200 percent increase in recycling since roofing tiles, and particleboard. 2011. The Federal Reserve is committed to reducing its ecological footprint. In One of the challenges has been to identify alternative options to landfills addition to continuing to increase the amount of shredded currency that that are cost effective and that do not increase transportation distances. it recycles, it is also pursuing ways to recycle other materials used in the Recycling options vary by location but composting has become the pri- packaging and processing of currency. mary method of recycling currency shreds. For example, several cash offices began working with third party facilities to turn shred into organic In addition, it should be noted that it is the responsibility of each Federal compost material. This material is used in products such as mulch, leaf Reserve bank to dispose of its own waste, although there has been a sys- humus, potting and top soil, and one company uses it in new road con- tem-wide effort to increase recycling and many banks work together to struction. exchange information about different recycling options.

8 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 9

Opinion Burning banknote waste in a cement works Burning banknote waste in a cement works

Beatriz García Banco de España

Waste is generally understood to be the useless material phenolic compounds react with hydrochloric acid, mainly produced dur- or by products left over after something is manufactured, ing the combustion of plastics containing chlorine, such as PVC. used, or destroyed. This is equally true of the banknote waste produced by shredding banknotes when they are no Waste. This is in the form of ash from the combustion process. This ash longer considered fit for circulation. This article offers a ■ usually contains heavy metals, so depending on their concentration, may be considered hazardous waste and require special handling. brief description of an environmentally friendly way of dealing with this banknote waste by sending it to a cement The process needs to be stable to achieve proper combustion and there- works for use as fuel. It also outlines the basic differences by minimise pollutants. To do so, the parameters to control are: between sending this waste to a cement works and sending it to an incinerator. — Temperature: at temperatures of around 1,000ºC the most persistent pollutants are destroyed.

Waste recovery is understood as the process of using the — Waste types: it is advisable to use a homogeneous mixture to improve waste for a useful purpose by substituting other materi- combustion. als, thereby reducing the latter’s consumption. Waste recovery allows the use value of the waste substituting — Retention or residence time: the time during which the waste is in con- other materials as an energy source at a facility to be tact with oxygen in the incineration chamber. quantified. — The ratio between the quantities of oxygen and waste in the mixture.

Using recovered wastes in an incinerator achieves two II. Incinerator goals. Firstly the waste is destroyed by burning it, and secondly the energy from the combustion process can be The goal pursued in an incinerator is the thermal treatment of wastes for utilised. In a cement works, however, the purpose is to their disposal, with or without recovery of the heat produced during com- use the waste as a substitute for other fuels, in order to bustion. Incinerators have a series of advantages, including: reduction in the volume of the refuse by up to 90%; the ash produced from combus- obtain the energy needed to produce cement. In both tion is more stable than the initial refuse; and it is possible to recover ener- cases the waste is eliminated by combustion, but the use gy from the heat produced. to which the energy is put in the incinerator and the cement works is different. The ideal process would be total combustion, in which only carbon dioxide and water are emitted to the atmosphere, while the ashes with the heavy metals, acid gases and particulate matter produced during the I. Combustion combustion process remained in the incinerator.

Combustion is a chemical process in which the waste is burned with the Incinerators operate at high temperatures (between 950 and 1200ºC) to aid of oxygen from the air, to produce gases and ash, while liberating ensure that dioxins and furans are destroyed. The residence time in the usable energy. Total oxidation of the waste takes place in excess air at combustion chamber is between 2 and 4 seconds.1 They incorporate flue temperatures of over 850ºC. The fuel is the waste and the water vapour gas scrubbing systems and filters to ensure the gases emitted to the produced is used to produce energy. atmosphere meet the applicable standards.

Schematically, the reaction is as follows: Controlling combustion is challenging, however, due to the heterogeneous mixture of materials in the waste. This can result in highly toxic combus- Fuel (wastes) + combustion air (excess O2 from air) tion products. The ash produced also contains heavy metals. Disposal is Æ Gases (N2 + CO2 + H2O + O2) + ash + energy incomplete, as the ash needs special treatment before landfilling.

The final products from combustion include: III. Cement works2

Gases. These are mainly nitrogen (N2), carbon dioxide (CO2), water In contrast to incinerators, cement works are considered co-incineration ■ vapour (H2O) and oxygen (O2). Smaller amounts of pollutant gases may facilities. Their purpose is to manufacture a product (cement) that requires also be produced, such as carbon monoxide (CO) if the oxidation is energy to produce. Wastes can be used as the standard fuel or as a sup- incomplete, ammonia (NH3), sulphur dioxide (SO2), nitrogen oxides (NOx) and other acid gases, depending on the type of waste. The most per- 1. To complete the oxidation process, the time required by European legislation is 2 seconds at sistent environmental pollutants are dioxins and furans. These chemi- a temperature of 850ºC (Directive 2010/75/EU, Article 50, section 2). cal compounds, with varying degrees of chlorination, are formed when 2. The term cement works refers here to a facility using wastes as part of its fuel.

BILLETARIA no 14 October 2013 9 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:53 Página 10

Opinion Burning banknote waste in a cement works

plement, to obtain the energy the cement works needs for the cement Raw material manufacturing process. Raw material Cyclones Gas Filter Energy use of waste at a cement works consists of replacing a share of the fossil fuels (coal or hydrocarbons) with a fuel obtained from disposable wastes. This allows the waste to be disposed of in an environmentally Chimney appropriate way, meeting the dual objective of eliminating the waste material and reducing the plant’s energy costs by reducing fossil fuel use. Fuels < 1,000ºC

Kiln Cement manufacture is an industrial process whereby cement is obtained Fuels > 2,000ºC from minerals. It consists of three basic stages:

Cooling of clinker — Obtaining the raw materials from which clinker,3 a hardened material which forms the basis of cement manufacture, is produced.

— Grinding and calcination of the raw materials to form clinker. Schematic diagram of a cement kiln / Fundación CEMA

— Grinding the clinker together with other materials to make cement. raw materials cleans the flue gases by neutralising acid gases (sulphur oxides and hydrogen chloride) and entraining other pollutants such as Depending on the specific manufacturing process, cement works pro- metals. The fumes are subsequently filtered again in gas cleaning equip- duced in principle a variety of atmospheric and terrestrial emissions, and ment. may in exceptional cases cause discharges into water. Possible environmental impacts also include noise pollution and odours. The type and It should also be stressed that there is complete elimination of the wastes quantity of pollutants discharged into the air depends on various parame- in a cement works: the ash produced by combustion, which may contain ters, such as the materials used in manufacture (i.e. raw materials and heavy metals, is absorbed by the molten clinker and incorporated in the fuel), and the type of process. final product in a harmless form.

However, the specific features of cement kilns makes them suitable for The particulate matter emitted by the cement works is not fly ash, but raw reuse and recovery of wastes without risks to the environment. This is material entrained by the gases on the way through the hoppers supply- ensured by the fact that: ing the raw materials.

— Combustion takes place in the cement Differences in how a cement kiln and an incineration plant operate kiln at between 1,450ºC and 1,800ºC, Residence this temperature being necessary to heat Temperature Inputs Outputs time the cement’s raw materials (lime and clays) until they partially melt. Cement kiln 1,450 to 1,800ºC 12 to 15 seconds 92% raw materials 100% clinker 6.4% fossil fuels 1.6% wastes 0% ash — The residence time the gases spend in Incinerator plant 950 to 1,200ºC 2 to 4 seconds 100% waste 30% slag the kiln at high temperatures (around 10 (Fly ash) seconds at temperatures of 850ºC- 1,800ºC) in an oxidising atmosphere in which the organic material reacts with Talking of waste: Why use a cement works rather than an incinerator? oxygen renders the organic compounds harmless. At a cement works the aim is to manufacture a product in which waste can be used to substitute for fossil fuels as a means of generating energy. Using waste as a fuel yields an energy saving that reduces the environmental — In the specific case of dioxins and furans, impact of cement manufacturing. the high kiln temperatures (around In a cement works the burned wastes are used as a substitute for fossil fuels, avoiding direct CO emissions from 2,000ºC) cause complete oxidation of 2 obtaining them and the process conditions are better suited to the elimination of wastes, due to: the wastes, breaking the links between the chemical compounds to reduce them Process stability: cement kilns are larger than incinerators. They can handle up to 100 tonnes of ore at over to their elemental form, such as oxygen, ■ 1,000ºC, giving much safer conditions in the case of any process variation given the high thermal inertia the chlorine, etc., and particles that are no material provides. longer toxic. Thorough combustion: cement works operate at very high temperatures (1,450ºC-2,000ºC). The gases spend The process is designed such that the flue ■ longer at high temperatures, ensuring complete destruction of organic compounds. At 2,000ºC all the organic gases are cleaned by the raw material compounds present oxidise completely, the chemical bonds in the compounds break to form particles that are no longer toxic. entering the kiln. The ground mineral ore flows in the opposite direction to the com- Cleaning of flue gases by the process materials: whereas in an incinerator the input materials are wastes and bustion gases. This direct contact with the ■ fuels, in a cement works, of each 100 kilos entering the process, 90 kilos are raw materials and 10 kilos are fuel, of which between 2 and 4 kilos are wastes. Thus, 90% of the cement kiln’s content is finely ground ore in direct contact with the combustion gases and so cleaning them.

3. Clinker is an intermediate product from which cement The characteristics of the emissions: the particulate matter generated in the cement kiln comes from the raw is made. It is obtained from the calcination of a mixture ■ material entering the kiln (limestone and other minerals). The process does not produce fly ash because the ash of limestone and clay in the kiln at temperature of has been melted into the clinker and unable to pass through the mineral hoppers. Similarly, the base ash and between 1,350ºC and 1,450ºC, with the addition of heavy metals are fused in the clinker and produce no waste. other materials with highly stable chemical bonds.

10 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 11

Opinion Environmentally conscious activities of the NPB Environmentally conscious activities of the NPB

Hitoshi Tanaka National Printing Bureau, Japan Bank note printing at the NPB / NPB

Environmental issues such as global warming have III. Obtaining ISO 14001 certification and implementing an attracted increasing attention worldwide in recent years, environmental management system and are often highlighted in Japan on TV and in print media. The NPB first obtained ISO 14001 certification for its Takinogawa Plant in 2002, and currently holds this same certification for five bank note-related plants (in Takinogawa, Odawara, Shizuoka, Hikone and Okayama). The Currency-related institutions such as central banks and Bureau reviewed its environmental policy, objectives, manual and opera- bank note printing works are also showing more interest tion procedure for the implementation of its environmental management in environmental measures. This article outlines the efforts system in 2004, and the system came into operation in 2005. The NPB and achievements of the National Printing Bureau (NPB), makes ongoing efforts to improve its environmental conservation activi- Japan, in this regard, including its obtaining ISO 14001 ties, and strives to leverage the environmental management system to certification. strengthen its management base.

The action guidelines stated in NPB’s environmental policy are as follows: I. Overview of the NPB Compliance with environmental regulations; The NPB was founded in 1871 as the Paper Money Office under the ■ Ministry of Finance. Since then, it has manufactured Bank of Japan notes, control of resources and energy usage; ■ passports, postage stamps, revenue stamps, the Official Gazette, and environmental-load-conscious product design and manufacture; other products. The Bureau has a head office, a research institute and ■ seven plants, which serve as bases for bank note manufacturing activities promotion of eco-friendly procurement for goods and services; ranging from design and Research & Development activities to the pro- ■ promotion of environmental conservation awareness activities. duction of bank note materials such as paper, plates and ink, as well as ■ bank note printing per se. The NPB manufactured a total of 3.15 billion IV. Efforts to reduce environmental impacts bank notes in 2012.

II. The NPB’s structure and environmental measure planning The NPB strives to reduce its environmental impacts in various areas, including origination, printing and papermaking processes. Some of the measures implemented in individual sections of the organisation are out- In Japan, pollution-related problems such as Minamata1 disease were lined below. recognized as social problems during the country’s period of rapid economic growth in the 1960s. Treatment of waste surfactant Measures implemented by the NPB in response to applicable environmental regulations include the introduction of pollution control systems The volume of used wiping solution (waste surfactant) from printing such as wastewater treatment equipment, and ongoing efforts in the process is significantly reduced by removing most of its water content areas of environmental protection and the development of emission using concentration processing equipment at NPB plants, and process- monitoring systems. The Bureau’s Environmental and Safety ing companies are contracted to burn the leftover sludge as industrial Management Division was established at the head office in 1975, and waste. Water produced by the concentration process is reused in the pro- was reorganised when an environmental management system was set duction of new surfactant and other purposes. up in 2005. Energy saving measures in relation to banknote printing The Strategic Planning Department’s Environmental Management Division machines now oversees the NPB’s environmental efforts, while operating, plant engineering and environmental management divisions within the Bureau’s The presence of a UV (Ultraviolet) drying mechanism in bank note printing plants collaborate on environmental management. Environment-related machines to dry intaglio ink efficiently results in higher electricity con- research work is also conducted at NPB’s Research Institute. sumption than for regular commercial printing machines using standard UV drying mechanisms. However, bank note printing machines recently installed at NPB plants use less electricity thanks to upgrades such as the inclusion of: 1. Editor’s note: According to the Larousse Encyclopedia, this is a severe neurological disease that was detected in 1950s in the Japanese city of Minamata. It is an intoxication resulting from the intake of fish and seafood contaminated by the discharge of industrial waste con- — ED motors (eco-drive motors; a kind of Interior Permanent Magnet taining large amounts of mercury. Synchronous Motor) to power the main and intaglio mechanisms;

BILLETARIA no 14 October 2013 11 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 12

Opinion Environmentally conscious activities of the NPB

— a water/air-cooled system for UV mechanism cooling; thermal recycling and the formation of inhibitors to be used in external iron plant smelting furnaces. — LEDs (light-emitting diodes) for in-machine lighting. Margin of nickel plate from the plate making process is cut out and recy- These new machines consume around 10% less electricity a year than the cled to make plating materials. Waste water from ink cleaning in the print- previous type. ing process is also recycled to make base course and cement materials, and used optically variable devices foil is recycled as solid fuel. Test print- Gas cogeneration system installation ing paper used in the printing process is transformed into flakes using high-pressure treatment and recycled to make toilet paper. The NPB installed a natural gas cogeneration system in 2008 to replace the oil boilers previously used to produce steam for bank note paper man- Administrative staff also focus on separated collection of waste as part of ufacture at its Odawara plant, which handles both paper making and bank- their recycling efforts. note printing. The system’s merits include higher energy efficiency through simultaneous electricity and steam generation, reduced greenhouse gas VI. Commitment to compliance emissions, and lower costs. The setup is ideal for a plant engaging in both papermaking and printing because the former requires large amounts of The NPB strives to reduce its environmental impact by respecting envi- steam and the latter requires large amounts of electricity. ronmental preservation regulations related to air, water and soil pollution, noise, vibration, ground subsidence and odour control. Annual checking Reduction of greenhouse gas emissions is performed to ensure that any emissions of air/water pollutants are within permitted limits. The NPB sets greenhouse gas emission reduction rates as part of its environmental goals and implements various related measures. Examples The Bureau also controls polychlorinated biphenyl (PCB) waste as neces- include the installation of natural gas boilers to replace oil-fired boilers at sary (the import and manufacture of PCB has been banned in Japan since the Okayama plant in 2009 to produce heat more efficiently with lower 1973) and implements measures to contain and remove asbestos found greenhouse gas emissions, as well as the installation of high-efficiency air in equipment and buildings. conditioners, inverter lighting and solar power generation equipment. Total greenhouse gas emissions in 2012 decreased by about 23% com- VII. Archievements pared to the base year of 2001. These measures also contribute to energy saving at the plants. As a result of the NPB’s variety of environmental measures, its total energy consumption in 2012 was 931,000 GJ (gigajoules) –a reduction of Reduced consumption of water and other resources about 15% compared to the base year of 2001 (Graph 1).

As part of its resource-saving efforts, the NPB sets targets and imple- VIII. Summary and conclusion ments measures to reduce water consumption, copier paper usage and waste generation. The main focus of environmental policies among Japanese companies has shifted from pollution control in the 1960s to global environment pro- Promotion of green procurement and green contracting tection today. The NPB also promotes pollutant emission reduction (pollution control and chemical substance control), cycle control (the 3 Rs: The NPB prioritises environmental friendliness in its procurement and con- reduce, reuse and recycle), energy saving (continuous reduction of ener- tracting, in accordance with the relevant regulations, including the Act on gy consumption) and global environmental protection (reduction of green- Promoting Green Purchasing (Act Concerning the Promotion of house gas emissions). Procurement of Eco-Friendly Goods and Services by the State and Other Entities) and the Act on Promoting Green Contracts (Act on Promotion of The Bureau remains committed to the promotion of sustainable efforts Contracts of National Governments and Other Entities Involving Due Care for environmental protection and the fulfilment of its social responsibili- for Reduction of Greenhouse Gas Emissions). ties. Environmental report publication Graph 1. Total energy consumption In recognition of its accountability to the public and other stakeholders, the NPB has published an annual environmental report to highlight its 000 GJ Base year 2001 = 100% environmental protection efforts since 2006. 100% 1,200 96.7% 100% 92.3% 91.0% 1,097 90.1% Harmony with the local community 1,060 84.9% 90% 1,000 1,012 998 989 931 80% As office buildings and houses are located around NPB plants, the Bureau 70% focuses on harmony with local communities. Related efforts included the 800 organisation of plant tours for local residents and cleanup activities in sur- 60%

rounding areas. 600 50%

V. Waste and recycling activities 40% 400 30%

In recognition of the need to minimise waste emissions, the NPB pro- 20% motes the reuse and recycling of materials as much as possible, even for 200 items treated as waste. 10% 0 0% In addition to such recycling activities in plants, paper sludge from the 2001 2008 2009 2010 2011 2012 manufacturing process in paper mills is sent for fermentation composting, Electricity Heavy oil Gas Others

12 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 13

Opinion Anti-bacterial treatment of bank note paper Anti-bacterial treatment of banknote paper

Georgy Kornilov and Yelena Kurkova Goznak

From time to time the public becomes worried about the question of whether bank notes can be carriers of possibly pathogenic microorganisms and bacteria arises and the issue is widely discussed in media. These assumptions are based on the microbiological studies have been carried out by experts in various countries, and over a couple of years at least a dozen studies on this issue have been published. However, it should be noted that producers of bank note substrates long ago carried out their own studies in this field and found ways of solving many problems. Preventing the spread of potentially pathogenic bacteria that can be present on bank notes is an important environmental aspect that substrate manufacturers need to address.

I. Studies on the presence of microorganisms Goznak, in cooperation with the Research Institute of Epidemiology and in the bank notes Microbiology of the Russian Academy of Medical Sciences (Gamaley Research Institute), carried out an analysis of the surface microflora on The first time the presence of bacteria on the surface of bank notes was worn bank notes. The purpose of these studies was to determine general identified was in 1972 by the American Medical Association. In 2001 microbial impurity of bank notes, identify the microorganisms and determi- according to the Institute of Biomedical Studies in Rio de Janeiro (Brazil) nation of integrated level of potentially pathogenic microorganisms. 100% eight various types of microorganisms can commonly be found on the contamination of all test bank notes was established during this study. It substrate of the paper and plastic bank notes. The presence of bacte- Structure and composition of microflora allocated from the surface of worn bank notes in ria, fungi and other potentially dan- Gamaley Research Institute gerous contaminants on bank notes has also been revealed in studies by other laboratories. MICROORGANISMS 34 species

It was not long before solutions to address this problem were proposed by bank note paper manufacturers. 9 classes, Bacteria Fungi 3 classes, French paper mill Arjo Wiggins was 30 species 4 species among the pioneers. They introduced a paper substrate with antibacterial and anti-fungal properties with the brand name BioGuard. Conditionally pathogenic Fungi-technophiles: Protection against viruses was sub- bacteria bio-decomposers and sequently developed for it. (4th group of pathogenicity) corrosion agents

Many countries systematically disin- Staphylococcus sp. Aspergillus flavus Streptococcus sp. Aspergillus niger fect money. In a number of countries Flavobacterium spp bank notes are treated with ozone Pasteurella multocida Fungi “pathogenic saprophytes” and ultraviolet or undergo heat treat- Bacillus cereus ment. Corynebacterium xerosis E.coli Aspergillus niger Enterobacter spp. Aspergillus flavus Over the period 2004-2007, Russian Penicillium chrysogenum bank note and paper manufacturer

BILLETARIA no 14 October 2013 13 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 14

Opinion Anti-bacterial treatment of bank note paper

was found that about 20% of them were potentially pathogenic. The fol- When using in paper composition it positively effects its mechanical char- lowing schematic representation shows the structure and composition of acteristics. It can be added into pulp, and applied on the surface of fin- the microflora. In total 34 species of potentially pathogenic microorgan- ished paper web, without breaking technological process. It is cationic isms were revealed and identified. All bank notes were inseminated by and is independently and strongly fixed in paper composition. Substance spores of mould fungi. consumption is economic –about 5 grams / litre.

II. Solutions against microorganisms in bank note paper The technology was protected by the Patent RU No. 2318942 dated 12.07.2006. Today the technology of bactericidal additives to paper is The cellulose materials of which bank notes paper is made are a good implemented at the Saint-Petersburg and Krasnokamsk Paper Mills of nutrient medium for microorganisms to grow. Their average life span on a Goznak and it is used in paper production for bank notes of different bank note is about 1 to 2 months. The latter is connected not only with denominations. endurance of bacteria, but also with the development of paper production technologies. Before 1998 banknote paper in Russia was made in an acid III. Determination of antimicrobial properties in the paper pH environment with the use of melamine formaldehyde pitch and forma- lin. Today bank note paper is made in a neutral pH environment. It is good A study to determinate antimicrobial properties in samples of the paper not only for preservation of mechanical durability of paper, but it also is a was carried out in the Research Institute of Microbiology and Epidemio- logy using traditional for microbiologists techniques.

Method 1. Reveals antimicrobial properties ■ of samples of special paper. It consists in determination of zones’ size of microorganisms growth inhibition around the paper with biocidal properties.

Method 2. Determination of death-time of ■ 99.9% of test microorganisms on paper samples. It consists in determination of death-time of microorganisms after they are applied on test and control samples of paper.

Method 3. Characterises susceptibility of ■ materials to microbial pollution in the course of their use. There were mould fungi and other microorganisms in the paper that was Growth of the bacteria taken from the surface of a bank note from circulation / Goznak not treated.

very attractive to microorganisms. They perfectly feel, live and breed in the Method 4. Evaluation of virucidal (anti-virus) properties of special paper. neutral environment. ■ The results on defining the preparation of the samples for consumption as Therefore in the context of improvement of bank notes’ durability besides well as place of its dosing control were received using these techniques. strengthening of barrier properties of paper substrate it is necessary to For reproduction of these techniques in the environment of non-spe- be concerned about its antimicrobial properties. Various antiseptics are cialised laboratories additional work was conducted with the attempt to used to decrease in microbiological activity on paper. While solutions for obtain the adapted technique of paper tests on biocidal properties using antibacterial treatment of paper certain conditions have to be devel- harmless to health performers of strains of bacteria and viruses. oped: Technological control of production demanded creation of an operational not to complicate the technological process of paper production; technique of control of microbiological contamination in a mode: “here and now”. For levelling difficulties arisen using traditional for microbiolo- ■ gists techniques during the work in non-specialised laboratory of the avoid affecting maintenance staff of paper manufacturer; Research Institute of Goznak, the new technique was developed. It estab- ■ lishes method for conducting control of antimicrobial properties of paper not to reduce productivity of equipment of paper-mills; in laboratory conditions. ■ not to have negative effect on mechanical and other characteristics of IV. Conclusion ■ paper. As a result of carried out work –the effective method enabling to reduce After the analysis of existing antimicrobial substances, special attention significantly potential biological contamination of bank notes. Use of was paid to polymeric additives of new generation. After conducting stud- antimicrobial paper for several years has shown both efficiency of special ies polymeric guanidines solution was selected. It reacts effectively not additives and control techniques. Let us note that today there are no only on different viruses, fungi and bacteria, but also some insects –moth, proven cases of distribution of infections through bank notes, however use bug-wood borer. At the same time the material is safe for warm-blooded of antimicrobial additives makes it possible to reduce even the theoretical as the living organism and water basins contain enzymes decomposing it. possibility of infection.

14 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 15

Opinion The FNMT’s paper manufacturing and the environment The FNMT’s paper manufacturing and the environment

Antonio Olmos FNMT-RCM

The Fábrica Nacional de Moneda y Timbre-Real Casa de la Moneda (FNMT-RCM), the Spanish Royal Mint and security printers, has two production sites: one in Madrid and the other in Burgos, a city of 180,000 inhabitants 230 km north of the capital. The Burgos facility produces security paper, much of which is used for banknote manufacture and printing. This article summarises some of the environmental principles and policies applied by the government-owned company producing cotton-fibre-based paper for banknote printing.

Industrial activity at the paper works began in the nineteen-fifties. Out of a commitment to the historic city in which it is based, and the natural environment surrounding it, as well as the management’s environmental awareness, respect for the environment is built-in to the whole manufacturing process.

I. The FNMT-RCM’s environmental policy in paper manufacturing

The FNMT-RCM’s paper manufacturing activity is based on strict respect for a series of environmental commitments, which form part of the framework in which the company operates. These include:

strict compliance with the national and supranational legislations and reg- ■ ulations applicable to its industrial activities;

annual proposals for enhancements to its environmental targets; ■ participation of the whole workforce in environmental protection and pre- ■ vention;

identification of environmental aspects of the production system; ■ pollution prevention and reduction, so as to minimise the potential harm- ■ ful impacts of paper manufacturing.

To implement its environmental policy, the Burgos paper mill has had an environmental management system in place since 2004, certified by an accredited independent entity, to ensure rigorous compliance with the relevant international standards. The Burgos paper factory’s environmental controls are currently accredited to the UNE-EN-ISO 14001:2004 standard. The main environmental aspects under responsible control and management are:

consumption of raw materials and consumables, natural resources, and ■ energy;

the production and management of waste; ■ emissions to water and the air. ■ The Burgos paper mill also has FSC (Forest Stewardship Council) certification, bearing witness to its sustainable management of the forests and sources of supply of the raw materials used to make other types of paper The FNMT-RCM’s security paper manufacturing facility in Burgos / FNMT-RCM

BILLETARIA no 14 October 2013 15 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 16

Opinion The FNMT’s paper manufacturing and the environment

based on wood pulp, such as the paper used for postage stamps.

A fundamental aspect of the objectives and commitments undertaken in the plant’s environmental policy is reducing consumption and using less polluting materials. This achieved by proper identification and monitoring, which are the key factors in achieving full sustainability of the manufacturing plant and processes.

Water consumption and emissions

Paper mills consume significant amounts of water compared to other industrial plants, as producing pulp is a typical wet process. In the case of pulp production, water is essential for the cooking, bleaching, transport and washing of the plant fibre used in manufacturing. Large amounts of water are also used to dilute, prepare the solution, organise, and treat a wide variety of different materials (such as security fibres and substances) which are delivered in a uniform suspension to spread them evenly at the wet end of the paper machine.

In the case of water usage, however, it should be noted that not all the water used is actually consumed during the process. In the majority cases, it is possible to reuse most of the water required in the papermaking process. For example, if the water is drawn from a large river and returned to it after careful treatment with Waste water treatment facility / FNMT-RCM adequate purity, the potential negative impact is minimised. This is the case of the Burgos paper mill, where the water used Biological oxygen demand (BOD): The BOD parameter represents the in manufacturing undergoes two-stage treatment at the factory, followed ■ volume of oxygen consumed by microorganisms to oxidise organic sub- by further treatment at a waste water treatment facility run by the local stances in waste water in given period. Organic substances, which are authorities before it is finally returned to the river. The mill is authorised by readily degradable and released into the environment (rivers and lakes), the Confederación Hidrográfica del Duero (the river management authori- can potentially have a significant negative impact on water quality, as just ty) to draw water directly from the River Arlanzón under its supervision. as in the previous case, the available oxygen is consumed during their Before the water is returned to the river it is treated at the factory’s own degradation. water treatment plant to ensure pollutants have been removed and minimum standards are met for it to be delivered to the municipal sewage Adsorbable organic halogen compounds (AOX): The parameter AOX is works, which reuses the sludge as agricultural fertiliser. ■ the sum of all the adsorbable organic halogen compounds in the waste water. This sum takes in a variety of different substances with similar spe- Higher water consumption also means more energy is needed for pump- cific chemical properties but widely varying hazardousness. ing and treatment, however. Thus lower water consumption is generally a good indicator of the extent to which available technical improvements Atmospheric emissions have been applied to the production process.

II. Environmental management parameters In order to reduce atmospheric emissions various aspects need to be monitored continuously: In what follows we will set out some of the main parameters an environmentally committed industrial policy should monitor. Sulphur dioxide (SO2): In the natural environment sulphur dioxide reacts ■ to produce sulphuric and sulphurous acid, and together with nitrogen Discharge treatment oxides, causes the phenomenon known as “acid rain” (acidification). At high concentrations it also represents a risk to human health (e.g. by Chemical oxygen demand (COD): This parameter represents the volume causing asthma). ■ of oxygen needed to chemically oxidise the organic substances in a sam- ple of liquid. COD is therefore a parameter representing the sum of the Nitrogen oxides (NOx): These are the main factors underlying the forma- organic pollutants the plant releases into the water. Readily degradable ■ tion of industrial smog and acid deposition. Significant NOx concentra- organic substances that are released into rivers and lakes in the envi- tions are harmful to health. ronment can potentially have a significant negative impact on water quality, as available oxygen is consumed during their degradation. Other Total suspended particles (TSP): At high concentrations particles can organic substances may be difficult to biodegrade or be persistent, and ■ cause respiratory problems, with the smallest particles being considered in some cases may have specific negative impacts. the most hazardous in this respect.

16 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 17

Opinion The FNMT’s paper manufacturing and the environment

Dioxins: Many dioxins have environmentally harmful impacts (toxic, muta- Carbon footprint ■ genic, carcinogenic effects) and are bioaccumulative and slow to biodegrade. Evaluating the amount of carbon dioxide produced during banknote paper manufacture, commonly referred to as the “carbon footprint”, is an essen- Noise pollution tial part of the plant’s environmental control and monitoring. To meet this challenge, the factory is currently considering the implementation of a new Noise pollution is an additional impact the plant’s manufacturing activity ISO 14064-1 certified management system, which would allow the that needs to be considered given the proximity of residential areas. As in amount of CO2 produced during manufacture to be ascertained via auto- all large scale production activities, the paper manufacturing process mated measurement and control procedures. inevitably causes noise pollution. This noise may be harmful to workers and is often a nuisance for the local community. Energy efficiency

However, noise can be avoided or at least mitigated by soundproofing Manufacturing pulp and paper are both energy-intensive processes, mak- equipment, fitting silencers to external points of emissions (vents, inlets, ing the efficiency with which this energy is converted and used of the etc.) and by following specific working procedures. Moreover, preventive utmost importance. Efficient energy generation (cogeneration, in particu- measures need to be taken if noise is not eliminated from the internal lar), transport (insulation), application (for example, dehydration and drying), workspace, as all employees must wear ear defenders when working in and the recovery and reuse of energy (heat exchangers) are prerequisites noisy environments. Eliminating internal noise also protects the surround- for efficient energy use. It is also necessary to envisage the gradual ings from unacceptable noise levels, given that the specific noise levels replacement of equipment with more efficient alternatives, which includes established by the authorities must be complied with. the case of lighting as well as that of more energy-intensive equipment.

Radiation III. Conclusion

Although radioactive instruments are used at the plant, for example for in- The FNMT-RCM’s Burgos paper mill’s environmental policy lays down a line measurement of specification parameters, the Burgos paper mill is not series of targets and criteria to address the most significant environmen- a source of hazardous radiation emissions (e.g. radioactivity). Emission tal challenges. The plant’s policy exceeds the requirements of the appli- levels are low and comply with the basic standards for the handling of cable legislation by a wide margin. Moreover, the Burgos paper mill is radioactive sources. Moreover, the regulatory checks are carried out by working to obtain an environmental management system verified under duly trained and authorised staff. the EMAS III (Community eco-management and audit scheme) standard in 2014, application of which is voluntary in Europe. This will enhance the In comparison with other impacts of pulp and paper production, radiation paper mill’s transparency and information about its environmental man- emissions are not environmentally significant, provided that the precau- agement policy, and reaffirms its commitment to a line of action defined tions just mentioned are observed and the periodic checks on equipment by guarantees of sustainability and environmental commitment vis-à-vis and content are carried out to safeguard workers’ health. its customers, competitors, the authorities, and society as a whole.

Feed and flock cleaning / FNMT-RCM

BILLETARIA no 14 October 2013 17 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 18

Opinion The carbon footprint of bank note security features The carbon footprint of banknote security features

Beat Attinger Orell Füssli Security Printing Ltd

The impact of bank notes on the envi- from a product across its life cycle from the production of raw material used in its manufacture, to disposal of the finished product”. ronment is a hotly debate topic, particularly in the security printing Based on this definition, this article will focus on the carbon footprint banknote security features leave in the production, circulation, and disposal industry. The public’s growing envi- phases: ronmental awareness has triggered a Classes of security features number of initiatives to reduce banknotes’ carbon footprint during their When trying to assess the environmental impact of individual security features, it is necessary to organise the features into different classes, in production, circulation, and disposal. order to establish a common basis for comparison. For this purpose, two different types can be distinguished:

This article aims to shed some light on Inclusive security features: These are security features that can be the environmental issues related to ■ applied during a production step already used in the production of bank - notes. Examples of inclusive security features are the see-through reg- bank notes, focusing particularly on ister or rainbow printing (offset), or the latent image (intaglio). Inclusive security features, and outlines an eval- security features as such have no impact on the environment, as they are created by the smart combination of technology (the printing uation framework in which to assess machine) and material (e.g. ink), without requiring any additional the environmental impact of individ- resources. Given their neutrality in terms of their impact on the environment, inclusive security features will not be treated further in this arti- ual security elements. cle.

I. The carbon footprint of banknotes Supplemental security features: These are security features that must ■ be either applied in a completely separate production step, or as an The Carbon Trust (www.carbontrust.com)1 defines the carbon footprint as “add-on” of an existing production step. In both cases, supplemental “…the total emission of greenhouse gases (GHG) in carbon equivalents security features increase the carbon footprint of the bank note.

Table 1: Factors that influence the carbon footprint of security features over the life of a bank note

Phase Contributors to the carbon footprint of security features

1. Production 1.a Raw materials used 1.b Production equipment and energy used (for the production of the feature itself, as well as for the application of the feature to the bank note) 1.c Delivery, including the transport to the printing works and the subsequent delivery to the Central Bank 2. Circulation 2.a Transport 2.b Processing 2.c Storage 3. Disposal 3.a Shredding / Incineration / Dumping to landfills 3.b Recycling1

1. Even though recycling is a hypothetical option, this option is hardly ever used, and therefore, will not be considered any further in this article.

1. The Carbon Trust is an independent organisation whose global head office is located in the United Kingdom. It helps businesses, governments and the public sector to accelerate the move to a low carbon economy through carbon reduction, energy-saving strategies and commercialising low carbon technologies.

18 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 19

Opinion The carbon footprint of bank note securityEntrevista features

The development of a banknote series A matrix of 16 ϫ 45 micro-perforations can be incorporated at almost any position on the bank note, to achieve maximum visibility of the feature, and There are different approaches to developing a new bank note series. its optimal integration with the bank note design. Common to all of them, however, is that when a Central Bank starts development, in conjunction with the appointed design and development team, An additional optical effect can be achieved when the micro-perforations the following key dimensions need to be taken into account: are of different shapes. In “TwinPerf”, for example, round and elliptical perforations are combined in such a way that different icons become visible The security and functionality of the notes; depending on the viewing angle. ■ The impact on the environment of the note specification throughout the Yet another possibility offered by micro-perforations of different shapes is ■ entire life-cycle of the bank note; the integration of denomination-specific patterns suitable for detection by The budget constraints, which translate into price / performance con- sensors. Possible sensors include smart phones, using the camera as ■ siderations; reading device and an application to analyse the pattern detected. This feature is known on the market as “StarPerf”. Design possibilities. ■ Paper and polymer notes featuring micro-perforations already exist in circu- A bank note is always a combination of a carrier substrate onto which lation. Experience both from circulating bank notes and physical and chemi- security elements are printed or applied. Each one of these components cal tests conducted in independent laboratories confirm that micro-perfora- should be assessed from the point of view of each of the dimensions list- tions in no way harm bank note longevity, that is to say, the substrate is not ed above, before a decision is made to include a particular component in weakened in the area where the micro-perforation is applied. Nor have there the bank note specification. been any signs of clogging or soiling of the micro-perforations. In essence, this security feature is very durable Table 2: Security element evaluation grid and stays crisp and well recognis- able, even on very soiled bank notes. Security Environmental Impact Price/ Security Functionality Design Feature Production Circulation Disposal Perfomance III. The environmental A impact of banknote micro-perforations B ... As discussed in the preceding section, the impact on the environment Z should be measured along the

To illustrate the use of the methodology described above to gauge the impact of a security element on the environment, in what follows, the specific case of the family of micro-perforations (namely, “MicroPerf”, “TwinPerf”, and “StarPerf”) will be analysed.

II. Security features based on micro-perforation

All security elements based on micro-perforations use laser technology to apply high-precision perforations to bank notes.

Micro-perforations are invisible when looking at the bank note, but show clearly when it is held up against a light source.

Since micro-perforations are virtually invisible in the bank note design, this security feature predominates in both new bank note design and bank note

upgrade projects. «StarPerf» micro-perforations / OF

entire value chain spanning from the production of the bank note, through its circulation, down to final disposal.

Production

The environmental impact of micro-perforations in production is funda- mentally defined by the carbon footprint left by manufacturing and operating the machine, as well as the consumables that are used to incorporate micro-perforations.

Using the weight of the machines as a reference indicator for the carbon footprint to manufacture the machine, the equipment used to apply micro- perforation is ranked in the central range. That is, key aggregates like Invisible micro-perforations (left) which are visible when viewed against the light (right) / OF Simultan Offset or intaglio machines are heavier, whilst others like foil (continue on page 22)

BILLETARIA no 14 October 2013 19 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:55 Página 20

Opinion Incorporating diffractive optically variable devices in banknotes in an environmentally sustainable way Incorporating diffractive optically variable devices in bank notes in an environmentally sustainable way

Peter Muehlfelder Leonard Kurz Stiftung & Co. KG

Since bank notes can pass through many glance. It also contains hidden security elements, so-called second- and third-line features, which are only identifiable with the aid of specialised hands each day, they gradually wear out inspection equipment. and many of them need to be replaced, on average, every three years or so. Over Application during the hot-stamping process 100 billion bank notes are produced Diffractive OVDs are applied either by the substrate manufacturer (paper factory, or polymer manufacturer), or in the bank note printing works. This worldwide each year. Given this volume is done generally by means of the hot-stamping process. The optical of production, it makes sense to consider security images are contained in a metallic foil consisting of various layers of material on a polyester carrier. In the paper mill, or the bank note print- the environmental aspects associated ing plant, a hot-stamping die or cylinder is used to release the OVD from with bank note manufacture. Are the the polyester carrier material and transfer the metal foil onto the substrate. This permanently bonds the OVD to the substrate such that it cannot sub- metallic, glossy, diffractive, optically vari- sequently be removed. The foil feature must be formulated so as to meet able features used in bank notes of any the usual requirements of the bank note industry with regard to chemical and mechanical resistance. The polyester carrier remains as a left-over particular significance in this regard? product that is then generally re-spooled, shredded and burned as fuel for Does their manufacture have a negative other industrial processes. impact on the environment? Do they How important are diffractive OVDs for bank note security? make it more difficult to dispose of the bank note? The following article will take OVDs are an important component in protection against counterfeiting. Bank note OVDs, with their elaborate image shifting effects, create a sub- a closer look at these issues.

I. What are diffractive OVDs?

Diffractive OVDs (Optically Variable Devices) are images containing optical microstructures that exhibit design or colour changes as the light conditions or viewing angle are changed. OVD Kinegram AG, a Swiss sub- sidiary of Leonhard Kurz Stiftung & Co. KG, (KURZ for short), has developed an OVD called KINEGRAM® that is based on a patented, non-holographic, vector-based technology. KINEGRAM® technology is not available commercially, and is employed by KURZ and OVD Kinegram solely for the production of governmental identity documents and bank notes. In the case of bank notes, the KINEGRAM® is typically integrated in the form of a stripe or a patch.

The KINEGRAM® is one component in a modular security solution and can be combined with other technologies. It contains first-line security fea-

tures that allow the authenticity of the bank note to be assessed at first The hot-stamping process / KURZ

20 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 21

Opinion Incorporating diffractive optically variable devices in banknotes in an environmentally sustainable way

stantial barrier for bank note counterfeiters and so enhance bank note mill or bank note printer consists of the polyester carrier material which is security. The KINEGRAM® security device, which was specially developed released during the stamping process. Bank notes with foil OVDs can for government documents and bank notes, provides an especially high therefore be disposed of professionally in exactly the same way as bank - degree of security and incorporates a number of features that significant- notes which do not have them. The recyclability of hot-stamped paper ly increase the level of counterfeit protection. These include, for example, and cardboard substrates was confirmed to be unproblematic in a PIRA the KINEGRAM ZERO.ZERO® technology, a “Metal on Demand” process, study in 20081. Although for security reasons bank notes are not recycled which allows specific areas of the design to be covered with reflective in the same way as other paper products it can nevertheless be categor- metal with high precision and extreme fineness of detail. The resulting ically stated that diffractive OVDs have no negative impact whatsoever on metallic images with their distinctive movement effects and pronounced the disposal of the end product. colour changes allow for fine-line designs which can be applied in register with the printed bank note design. KINEGRAM ZERO.ZERO® transforms The components of a hot-stamping foil the OVD from a single image or continuous stripe into a filigree design element that is perfectly integrated into the final print product, creating an Hot-stamping foils do not constitute hazardous working materials as extremely high barrier against counterfeiting. In addition to this security defined in the 11/2010 version of the Hazardous Substances Ordinance. feature, there are also a wide variety of other proprietary technologies that According to REACH, the European Union legislation on chemicals and can be adapted to the individual requirements of the particular central their safe use, they fall under the category of “products” and therefore do bank or integrator. not need to be registered. The following general statement applies to all KURZ hot-stamping foils: We process no toxic or carcinogenic sub- II. What are the prerequisites for using diffractive OVDs stances to produce our foils; we use no chlorinated hydrocarbons; nor do in an environmentally sustainable manner? we use any raw materials containing cadmium, lead, mercury, or chromium. To answer this question, it is not sufficient simply to examine the product in isolation. We need to look closely at the whole manufacturing process. The KURZ’s stamping foils fulfil the requirements of the various national We have to consider what components the diffractive OVDs are made and international regulations with regard to their formulations, and the from, how they can be disposed of, under what conditions they are pro- specifications provided by the raw-material suppliers, when employed in duced, and what happens to the waste generated from production. Some their respective specialised applications. characteristics apply to diffractive OVDs in general, while some points may vary from manufacturer to manufacturer. We will now describe how The manufacturing process KURZ, manufacturer of hot-stamped security features, deals with all aspects of sustainability. Whether the production of hot-stamping foils is environmentally compatible or not largely depends on the manufacturer. KURZ’s manufacturing The end product locations for bank notes around the world are certified to the ISO 14001 Environmental Management System standard. KURZ uses modern pro- Only extremely thin layers of lacquer or aluminium remain on the end duction systems with downstream regenerative combustion facilities that product, i.e. on the bank note after the hot-stamping process; the trans- ensure that energy is not lost, but rather recuperated to the fullest extent ferred foil amounts to less than one percent of the total weight of the ban- technically possible. Our company achieves efficiency levels of up to 95 k note. The bulk of the product delivered by the foil supplier to the paper percent while doing so.

Thanks to these regenerative systems, KURZ is able to achieve emissions 85 percent below the statutorily- prescribed values everywhere around the globe. No waste water is produced during foil production. Using acoustic enclosures and a highly-efficient waste-air treatment plant, our company has also been able to minimise the impact of our sites on their immediate environment.

The application process

Hot-stamping technology is charac- terised by its fundamental environmental compatibility. Extremely thin metallised transfer layers are applied to a carrier foil and subsequently transferred to a substrate. After the carrier foil is released, only the transfer

1. PIRA Report: “Repulpability of foil-decorated paper”. Prepared for Foil Stamping & Emboss- ing Assoc. by R N Jopson and G Collis. 8 Sep- Diffractive OVD with KINEGRAM ZERO.ZERO® technology / KURZ tember 2008.

BILLETARIA no 14 October 2013 21 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 22

Opinion Incorporating diffractive optically variable devices in banknotes in an environmentally sustainable way

layers remain on the substrate. No wet lacquers are used during the trans- that the environmental impact of OVD foils in the full life cycle of the bank- fer process and no emissions are released. As a result of the extremely notes is insignificant. thin layer, with a thickness of just a few micrometres, the energy consumption per square centimetre of application area during the application The most significant impacts arise rather during the bank note distribution process is very low. and consumption phases. The calculated environmental impact of the OVD foil in relation to the whole bank note was, according to the study: Manufacturing waste — Primary Energy Demand: approx. 0.2 - 0.4% Any printing process, including the production of bank notes, can only be — Global Warming Potential: approx. 0.3 - 0.5% as environmentally friendly as the bank note printer or papermaker’s pollutant minimisation and recycling programmes allow. From an environmen- — Acidification Potential: approx. 0.2 - 0.4% tal point of view KURZ foil is compatible with the processes used by all major players in the banknote printing industry in that PET-based foil — Eutrophication Potential: approx. 0.2 - 0.6% (polyethylene) can be disposed of without any risk to nature or the environment. The residual PET carrier component of the foil can be used as a — Smog Formation Potential: approx. 0.3 - 0.6% high-quality energy source in thermal recycling plants. KURZ is constant- — Ozone Depletion Potential: approx. 0.1 - 0.2% ly working to improve its material recycling programs and initiatives. III. Conclusion Study by the Bank of Canada confirms low environmental 2 impact Diffractive OVDs give bank notes strong protection against counterfeiting. OVDs are predominantly applied using the hot-stamping process. This The data from a life cycle assessment initiated by the Bank of Canada ard- involves the transfer of an extremely thin metallised transfer layer that has ing to ISO 14040/44 regarding the manufacture, distribution, consump- no negative impact on responsible disposal of the bank note. The transfer tion and disposal of banknotes at the end of their circulating life shows of the hot-stamped OVDs to the bank note is emission-free and energy efficient. How environmentally friendly the foil application process is in the overall scheme of things depends largely on the paper manufacturer or 2. PE Americas and Tryskele: “Life Cycle Assessment of Canada’s Polymer Bank Notes and- bank note printer. However, at KURZ, the entire process chain has been Cotton-Paper Bank Notes”. Prepared for the Bank of Canada, 27 May 2011. In: http://www.bankofcanada.ca/wp-content/uploads/2011/06/Life-Cycle-Assessment-of-Poly- designed with ecological sustainability in mind. KURZ’s diffractive OVDs mer-and-Cotton-Paper-Bank-Notes_opt.pdf (Accessed on 25 July 2013). can therefore be described as environmentally sustainable.

(cont. from previous page 19) ical properties of the supplemental security features applied to them, and, to a certain extent, of the substrate, depending on which substrate the patch application machines are lighter. The same is true for the carbon bank note was printed on. footprint caused by operating the machine: the energy consumption, which we take as reference indicator, is in the medium range, compared Again, when the carbon footprint is being evaluated, micro-perforation is to other production aggregates used to print bank notes. ranked at the top of the list of supplemental security elements, because of the simple fact that absolutely no residue of the micro-perforations is left Finally, the carbon footprint of the consumables must be evaluated. In this when the bank note is destroyed. aspect, micro-perforation stands out, as, unlike all other supplemental security features, no consumables are used. As the micro-perforations are IV. Conclusions applied by laser, no consumables used and no waste is left behind from this particular production process. As a result, micro-perforation leaves no When a new bank note or series is developed, a number of key issues carbon footprint caused by consumables, and hence, surpasses any have to be considered. Among them is the environmental impact (“carbon other supplemental security feature. footprint”) that the bank note leaves, with all its security features incorporated in the substrate, or printed or applied to the surface. The “carbon Circulation footprint” is internationally accepted as a valid measure for the estimation and comparison of a product’s environmental impact. It measures the As mentioned before, individual security features have negligible impact total emissions in carbon equivalents from a product across its life cycle on the environment during the bank note’s circulation phase. The only from the production of raw material used in its manufacture, to disposal of impact that needs to be taken into account in this phase is the abrasive the finished product. wear, that is, the particles that wear off and that may pollute the environment when the bank note is in circulation. When analysing the carbon footprint of supplemental security features applied in new banknote processes (i.e. features that need a separate Analysing the carbon footprint from this viewpoint, micro-perforation production step for their application), the entire value chain, from the pro- scores very well compared to other supplemental security features, as duction of the feature, to the circulation and its disposal at the end of the there is no abrasive wear from the micro-perforation. note lifecycle have to be considered.

Destruction To illustrate the application of this methodology in a specific case, the example of micro-perforations was chosen. The micro-perforation family The disposal of bank notes at the end of their lifecycle is mostly done by of security features consists of “MicroPerf”, “TwinPerf”, and “StarPerf”. either shredding or dumping the shredded note into landfills, or by incin- The comparison of the carbon footprint of these elements with other erating the notes. security features (printed or applied) reveal that micro-perforation ranks among the best, as it leaves a minimum footprint during its production, Bank notes unfit for circulation must be treated as waste, due to the chem- and none during circulation and destruction.

22 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 23

Opinion The “green” bank note. A holistic view The “green” banknote. A holistic view

Alfred Kraxenberger, Christoph Mengel and Alfred Schmidt Louisenthal and Giesecke & Devrient GmbH

We are immersed in the cash cycle. Everything we produce, print, and process in our daily work, has an impact on the cycle in one way or another. Its frontiers expand with the increasing complexity of the systems needed to serve the multitude of stakeholders, ranging Raw material Air from the public, as cash users, to issuers who withdraw it from circulation at the end of its lifetime. It is safe to say that not only does Louisenthal cash work well, but it is the most universally site accepted payment system. It has provided an Paper production excellent service to society, and will continue

doing so and grow even faster in the future. Energy Water Manufacturing “green” paper bank notes. A holistic approach / G&D

While recognising the positive aspects of the cash cycle, there is no Cotton is a natural, renewable raw material and is readily obtainable for doubt that some extra steps could be taken to improve it, including manufacturing bank notes. The main function of the cotton industry is to enhancements to its environmental aspects. Everyone knows how a lot supply the raw material used by the textile industry, which prefers longer of work goes into designing and selecting the components of a bank - fibres. The unused short fibres are therefore often treated as waste, but note. However, the public is often unaware of the details. They only per- are nevertheless suitable for manufacturing bank notes. When we select ceive the tangible final product they can use. However, lot of work also the most appropriate cotton, we also ensure that the raw material we goes into what cannot be seen, and not just in terms of the appearance use is free of toxic substances. The cotton used for bank notes repre- of the final product being created. Today, more than ever, we are sents just 0.003% of total world output, so its environmental impact is exhaustively analysing the whole bank note directly and directly, using marginal. various technologies, materials, logistics, and resources that we are now so dependent upon, all the “invisible parts” that consume energy and Our response to growing demand for increased bank note durability is to natural resources, in both production stages and other phases of the use cotton-based substrates with increased resistance to soiling, and cash cycle. wear and tear. It is also important to note that these durability solutions do not compromise the basic principle of ensuring security that is intrinsic to Giesecke & Devrient (G & D) and Louisenthal have decades’ of experi- the substrate. Special combinations of pre-printing and post-printing ence meeting the needs of the bank note life-cycle, from manufacturing coatings are available. Alternatively, the substrate can be made tougher the substrate, security elements, printing, and processing, through to by incorporating a polymer film (Hybrid). destruction. Their strategic vision of the cash cycle includes everything from the security architecture and high quality printing requirements, pro- The production of paper-based substrates and non-renewable sub- cessing imperatives, finishing and treatment solutions at cash centres. strates are often compared in terms of their CO2 emissions. Cotton This article briefly explains our universal platform for an environmental offers significant environmental benefits relative to polymer, which is a bank note and presents practical examples from G & D and applications product of oil extraction and refining, and is consequently not a renew- from Louisenthal. able material.

I. Three areas of the cash cycle Paper manufacturing requires water. For this reason, our substrate plants are mainly sited close to water supplies. Once used, biologically This section addresses the activities of the three areas of the cash cycle treated water is mixed with bacteria and microorganisms (activated in terms of their environmental impact: manufacturing the bank note sub- sludge) and pumped through a membrane filter in the activated sludge strate, the performance of the printing works, bank note processing and tank. The pores in the filter membrane are extremely fine, with a diame- various views on bank note durability. ter of just 38 ϫ 10-6.

Manufacturing banknote substrate The water is purified by passing through the filter (permeation) and can be reused in the production process or discharged into the water supply. There is growing demand not just for more durable bank notes but also for more environmentally friendly bank note substrates. It is also gratifying to The new extension to Louisenthal’s paper substrate manufacturing plant be able to manufacture a multifunctional, secure, high-tech product like a in Bavaria includes controls to ensure environmental protection.

bank note using waste cotton fibre from the textile industry. Sustainable air emission treatment and efficient heat recovery reduce CO2

BILLETARIA no 14 October 2013 23 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 24

Opinion The “green” bank note. A holistic view

centralised pre-printing at its Munich headquarters, in order to optimise materials handling, including waste treatment.

Ink mixture: G & D has found that grea- ■ ter energy savings are possible when inks are mixed in-house. Inks for offset Fresh water supply Paper machine Membrane bioreactor Water treatment Fresh water supply (MBR) and intaglio are produced on a just-in- time basis. Thus, only the amount Treated water fit for discharge to water supply / G&D required is produced, which helps reduce ink wastage significantly, while Membrane bioreactor (MBR) also making it easier to predict needs, and so improve supply logistics.

Reduction in solids Reduction in chemical In the case of the printing processes themselves, continuous improve- oxygen demand (COD) ments are made to minimise the amount of energy used when drying inks mg/l mg/l using optimised ultraviolet (UV) drying lamps. Residues can also be signif- 160 1,800 icantly reduced by means of online inspection, for example, of the intaglio 140 1,600 presses. Faulty sheets can be identified at the start of the process such 120 1,200 160 1,800 that potential production faults can be eliminated, thus reducing overall 100 mg/l 1,000 mg/l losses. Therefore, an effective quality management system is the key to 80 120 800 mg/l 1,200 optimising processes and reducing waste. 60 600 mg/l 40 400 20 200 An additional way of reducing energy consumption is to make longer- lasting bank notes. Improving ink adhesion is a significant part of this Before MBR After MBR Before MBR After MBR strategy. How can this be done? One of the features of standard paper is good ink adherence. However, it becomes soiled easily if the surface is not coated (particularly when circulating in adverse conditions). emissions by up to 800 tonnes a year, compared with a conventional Intaglio printing on both sides of the bank note helps increase the plant. paper’s strength in circulation as it makes both surfaces less porous, reducing the bank note’s propensity to soiling. Calendering the substrate When producing paper substrate, rigorous control over the inputs, out- by 30% also makes it more robust. While a coating applied to the outer puts and “invisibles” is an excellent basis for an environmentally friendly layer of the substrate helps considerably, the optimal solution is dual “green” bank note. A renewable cotton substrate also has “zero” impact treatment, combining treatment applied to both the substrate and the on the environment. Short cotton fibres, which otherwise would be sent finished bank note. For this reason the TOPAS solution (treating both the for immediate for destruction, are used to make the bank note substrate, printing and substrate) is proposed. This is a combination of a pre- giving them a useful life in a new product. impregnated document with a single-layer post-printing UV varnish. The pre-printing coating acts as a barrier against penetration by liquids and Efficiency of the printing works at the same time enhances receptiveness to print. The post-printing varnish protects the bank note surface against soiling. Right from the outset is possible to save energy in transport and logistics if the substrate manufacturing facility is close to the printing works. This To conclude, the combination of printing on the right materials with tech- minimises the environmental impact of air transport and associated secu- nologies and checks to improve quality processes, are the basis for a rity risks. An example is the proximity of Louisenthal’s facilities to the G & “greener” bank note. D printing works in Germany. However, it can happen that the substrate manufacturing facilities are in a different country or even on a different con- Cash handling and viewpoints on the cash life-cycle tinent from the bank note printing works. This makes international transport necessary. Maritime transport is usually the chosen logistic option, and its Once manufactured, the distribution, transport and handling of cash environmental impact is much lower than that of air transport. accounts for around 90% of the total cost associated with its use. It is estimated that the environmental footprint of the circulation of cash, in Bank note printers focus mainly on reducing consumption of resources in terms of consumption of energy and materials, exceeds that of its manu- general, starting with primary products (inks, films and paper), optimising facture. Therefore, the “green” or environmental aspects of cash handling processes that use energy and materials, and reducing the wastes of areas and cash circulation need to be considered. these materials. Secondly, attention is focused on minimising the use of chemicals and considering the possibility of eliminating them, as far as is Transport and logistics can be improved in several ways: possible. G & D has other initiatives underway in this area: ■ — Reducing the amount of transport and/or the distances travelled can Discharge treatment: Recovering and recycling inks and corresponding ■ yield significant energy (and cost) savings. This can be achieved ■ materials is an important factor. G & D treats discharges efficiently at all through local recycling of bank notes in ATMs (as offered by the Win- its plants. This allows up to 96% of the caustic soda used in the intaglio cor Nixdorf family of CINEO products). printing process cleaning water to be recovered. — Also by means of management tools to optimise inventory control Optimising pre-printing: The environmental impact of manufacturing print- ■ (ICO), reducing service frequency by better forecasting and raising the ■ ing plates has to be monitored very closely. For this reason, G & D has efficiency of cash logistics.

24 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 25

Opinion The “green” bank note. A holistic view

Bank note processing can also be improved to make it more environ- ■ mentally friendly. The energy consumption of bank note processing systems depends on singler design and on the transport inside selectors in two ways: primary energy consumption and additional energy for air conditioning.

The advantage of large (centralised) cash processing centres is that oper- ■ ations are more efficient and the running costs of buildings (heating and air conditioning) and other infrastructure are lower. With a wider range of acceptable environments (in terms of temperature, humidity), overheads can be reduced. On-line shredding (with transverse blades) requires only around 20% of the power needed for bank note destruction in a stand- alone shredder/pelleter. The size of the shredded particles needs to be appropriate to ensure there is no risk of bank notes being recomposed, but no smaller. Cotton flowers and pellets / G&D Last but not least, the packaging in which bank notes sorted as fit and ■ due to be returned to circulation are sent has a number of environmental impacts that go beyond the demands of security measures. The use carbon emissions from our business activities. Using resources respon- of disposable packaging (such as security bags or cardboard boxes) or sibly and protecting our climate and environment are fundamental values returnable packaging needs to be analysed closely. For example, the in our environmental strategy and among the main priorities of our cor- availability of packaging materials and the logistics of returning empty porate social responsibility policy. The carbon footprint of G & D’s activ- packaging need to be taken into account. The optimal focus depends ities has been determined using a web-based corporate sustainability on the structure of the cash cycle and may require various flexible solu- solution, within a consistent framework allowing automatic conversion tions. into carbon emissions using industry-recognised emission factors, and the analysis and presentation of reports, in accordance with internation- II. Banknote recycling al standards, such as the greenhouse gas protocol.

Our overarching goal is to reduce greenhouse gases by 10% over the The waste produced from shredding unfit bank notes is usually burned, period 2010-2016. To achieve this, a carbon emissions reduction pro- which produces emission of carbon dioxide and other greenhouse gases, gramme is being implemented, the first step in which is to document or they are landfilled, where they produce methane. However, the biolog- and optimise energy efficiency and carbon reduction measures at all our ical decomposition of short cotton fibres would have taken place anyway, production centres. Emissions in scope 1 and 2 by total businesses vol- even if they had not been used to manufacture bank note paper, as they ume have dropped by 3.1%. The improvement in the efficiency of our would have been treated as a waste. Consequently, manufacturing bank- operations is a fundamental part of our carbon reduction strategy. An notes from cotton paper does not produce any additional environmental 8% increase in CO emission levels is forecast if efficiency measures are impact in this regard. And as cotton is a renewable raw material, its pro- 2 not applied. Each facility is therefore responsible for defining specific duction absorbs CO , offsetting that from waste cotton or withdrawn 2 measures to cut their carbon emissions. bank notes, and generates oxygen. IV. Reflections on the green banknote To extend bank note life and avoid their elimination by incineration or landfilling of the waste, G & D has developed alternative recovery methods for We all want a green and sustainable environment for future generations shredded bank notes and unused bank note paper. This is a process that and it is clear that we can take measures in our activities to reduce bank - allows bank note paper to be reduced to fragments and reused as gran- notes’ carbon footprint. As we said in the introduction, the public is often ules or pellets. These granules are mainly used as loose filler in the con- unaware of the details of our efforts and only perceives the final product struction industry, as a soundproofing and insulating material in walls and they can see and spend. floors. Like other similar products, based on recycled paper waste, this product is compatible with bio-construction principles and is free of haz- We can increase the recognition of our social responsibility in relation to ardous substances. environmentally friendly bank notes with the support of issuing central banks, which are continuously evaluating the community’s cash needs. It At the heart of the process is a granulator, which can also be used nowa- gives us security that the large majority of issuers also recognise that there days to produce fuel for heating systems. The quality of the granules pro- is a clear environmental benefit in cotton paper substrates, which are duced in this way is similar to that of commercially available loose filler based on an organic material. material made from wood pulp. Its thermal conductivity is 0.07-0.08 (W/m * K). Its total density is (480-500 kg/m³), which means that there is no To conclude, there are clear signs of the creation of a “green” or environ- extra economic cost compared with transporting shredded material. mentally friendly bank note in the three areas of the cash cycle presented in this article: in the case of the substrate, the basis exists for a green bank - Adding a mixture of mineral salts makes the flakes fire resistant and means note. As regards printing, monitoring and using quality materials are the insulating material is pest and mould resistant and does not rot. essential. Finally, in terms of the environmental aspects of cash processing and movement, the technologies and logistics of the cash cycle play III. The goal is to reduce the carbon footprint a major part throughout the whole cycle.

G & D has also set itself the goal of reducing its corporate carbon foot- This global approach to a “green” bank note is environmentally responsi- print. Our commitment to sustainability is fundamental in controlling the ble and helps enable efficiency gains throughout the cash cycle.

BILLETARIA no 14 October 2013 25 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 26

Opinion The polymer bank note: a reduction in environmental impact The polymer banknote: a reduction in environmental impact

Jaime Pacreu Innovia Security, S.A. de C.V.

Banknotes printed on cotton paper have a long notes for the first time. Warren said: “The opinions we received were favourable, with polymer bank notes looking modern, clean, and more history, so it should come as no surprise that secure, but we were surprised at how often people asked about the envi- central banks around the world have been cau- ronmental impact of the new substrate and whether worn polymer bank - tious and chosen not to rush to migrate to an notes could be recycled.” alternative substrate. This kind of decision has To answer the public’s questions on environmental issues, and study to be grounded on an evaluation of the avail- bank notes’ environmental impact more broadly, the Bank commissioned able alternatives based on the application of a a report entitled “Life Cycle Assessment of Canada’s Polymer Bank Notes range of criteria. One of these, the counterfeit and Cotton-Paper Bank Notes.” rate, was high on the agenda in Australia when “We commissioned the study to evaluate the impact of Canadian bank - the polymer bank note was invented, as the notes on the country’s environment using two different substrates. We country faced a serious counterfeiting problem expanded the study to identify any substances of concern1, whether on account of the bank note components or the emissions produced during at the time. The Reserve Bank of Australia was manufacture. We wanted to follow international standards2 to ensure the convinced that the new substrate, as well as scientific rigour of the study, and because we wanted the study to be an offering other advantages, would help solve effective communication tool.” The full study has been published on the this problem. Therefore, in 1988, over twenty- Bank of Canada’s website. five years ago, it launched a series of polymer The study had two further objectives: bank notes printed by Guardian®. The most significant additional benefits envisaged at the Ensuring that Canada’s new polymer bank notes are consistent with ■ established or prospective Canadian health, safety and environmental time included durability and the possibility of legislation and any related treaties to which Canada is a signatory.3 recycling the product obtained from shredding unfit bank notes. Revealing those aspects of bank note production and distribution that ■ could be targeted to further reduce the environmental impact.

Over time the material has been found to have other benefits. These About the study include the main benefit mentioned in this article: their reduced environmental impact. A study conducted in 2011 by the Bank of Canada The Bank of Canada asked two consulting firms specialising in sustain- showed that replacing cotton paper with polymer as the substrate for ability issues, PE Americas and Tryskele Environmental Health and Canada’s bank notes has significantly reduced the environmental impact Safety4, to evaluate the environmental impact of the provision of $2,000 of issuing bank notes. (CDN) in multiples of $20 (CDN) bank notes over a time span of 7.5 years.

It should be noted that the Bank of Canada’s main motivation for consid- Seven relevant impact categories were evaluated, as defined by the ISO ering replacing cotton paper with polymer was making the bank notes standard on life-cycle analysis. These were climate change, pollution of harder to counterfeit rather than the environmental impact. Martine Warren, water and air, ozone depletion, environmental acidification and toxicity for scientific advisor at the Bank of Canada said that “what mainly motivates persons and ecosystems.5 the Bank to consider a new bank note series is basically security.”

I. Why did the Bank of Canada commission a report 1. As defined in Canadian law. analysing the bank note life-cycle? 2. ISO 14040: “Environmental Management –Life-cycle assessment– Principles and framework,” International Organization for Standardization, ISO. Geneva, 2006. 3. Page 12. The Bank of Canada presented polymer bank notes to the Canadian pub- 4. Front cover. lic through working groups in which many of the participants saw the new 5. Page 18.

26 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 27

Opinion The polymer bank note: a reduction in environmental impact

The assessment examined the following aspects:6 The study’s findings

Manufacture and transport of raw materials. The general results of the study highlight the differences between the two ■ substrates on various counts. Warren said: “It was gratifying to see that Manufacture and packaging of the substrate (polymer or cotton paper). the solution we knew would be best for bank note circulation in Canada ■ would allow us to significantly reduce the environmental impact of issuing Printing, storage, packaging and transport of bank notes. bank notes. Polymer bank notes allowed us to achieve a reduction of 30% ■ of more on all seven of the study’s indicators.” Overheads (lighting/heating) and waste disposal at suppliers’ facilities. ■ Distribution of bank notes through ATMs and subsequent use. The biggest environmental impact of bank note manufacture with cotton ■ paper is due to the fact that they need two and a half production cycles, End of cycle: shredding and landfilling. whereas polymer bank notes only need one.9 Over a short period (three ■ years) cotton paper bank notes beat polymer on three measures: global The Bank expects polymer bank notes to last at least 2.5 times as long as warming potential, primary energy demand, and atmospheric acidification.10 the previous cotton banknotes. It is estimated that the polymer $20 bank - notes will last until the end of the study (seven and a half years), whereas However, the results were very different over the complete life-cycle. A cotton paper bank notes last three years.7 This was an important factor in sensitivity analysis extending to ten years (beyond the seven and a half the study’s findings. years of the rest of the study) yielded significant results. Polymer achieved a reduction in environmental impact of 75% in the case of global warming In line with the international standard ISO 14040:2006, the study included potential, 71% in the case of primary energy demand, and 71% in the a panel of four experts,8 who critically reviewed and independently verified case of atmospheric acidification. compliance with the ISO standard. There were also significant differences in terms of distribution. Canada is At the time of the study the Bank of Canada had not decided on how to a large country: it is 9,306 km across from east to west, and 4,634 km recycle polymer banknotes, so the assessment was based on the shred- from north to south, and it is estimated that over the evaluation period, ding and landfilling of both cotton and polymer bank notes. paper bank notes need to be distributed two and a half times more often than polymer ones.

6. Page 16. 7. Page 16. 9. Page 43. 8. Page 117. 10. Page 56.

Nature in effervescence / JDN

BILLETARIA no 14 October 2013 27 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 28

Opinion The polymer bank note: a reduction in environmental impact

The birth of polymer banknotes

Paper bank notes originated in the Song Dynasty in China in the 11th century and first appeared in Europe in the 13th century.

Polymer bank notes were first developed at the CSIRO (Commonwealth Scientific and Industrial Research Organisation), Australia’s national government body for scientific research, while searching for natural fibres, according to Dr Gerry Wilson, leader of the CSIRO’s Flexible Electronics group in the Materials Science and Engineering division. CSIRO’s scientists behind the research, led by Professor David Solomon, also tried a mixture of plastic and natural fibre substrates. But it was found to be possible to incorporate the best security measures, such as moiré patterns, temperature sensitive colour-shifting inks, diffraction gratings (holograms), in polymer. And it proved ideal for the most obvious and surprising security feature: the transparent window. “The window is easy to produce in polymer, and is highly effective as an anti-counterfeiting measure, which is what motivated the change,” Wilson said.

Polymer also differed from cotton paper bank notes in the end-of-life phase (shredding and landfill). Following the study’s conclusions, the Bank of Canada has confirmed that it plans to recycle polymer bank notes.

II. Recycling of bank notes manufactured by Guardian®

Central banks shred the banknotes they remove from circulation and those found to have any defects during the production process. Many users of polymer either recycle the product after shredding or are in the process of doing so.

Recycled polymer resin is generally sold on world markets at approximately 60% of the price of virgin resin, in some cases rising to 70%, depending on supply and demand factors.

Recycled polymer resin retains the properties that Under the sea / JDN make original resin valuable. It is resistant to the weather and chemical agents, stable under ultraviolet light, long-lasting average North American car. Manufacturing, distributing, using and and easy to mould. However, it should be noted that recycled polymer destroying a hundred 20 dollar cotton paper bank notes in a period of seven contains inks, so cannot be used for certain applications, such as making and a half years can be compared with driving a car 150 km. The equiva- new bank notes, for example. lent for polymer bank notes is 100 km, representing a reduction of 33%.”

When Canada completes its migration to polymer bank notes in November IV. Conclusion of this year, there will be approximately 20 billion polymer bank notes in circulation in 23 countries. This gives an idea of the importance of the To get an idea of the potential environmental impact reduction from using process of polymer recycling in caring for ecological and environmental bank notes printed on polymer, it is worth mentioning that when Canada aspects. completes its migration to polymer bank notes in November of this year, there will be approximately 20 billion polymer bank notes in circulation in III. Bank note life-cycle in context 23 countries. At the same time there will be approximately 160 billion cotton paper bank notes in circulation in the United States, the euro area, In 2003 the European Central Bank conducted a study on the end of the India and China. bank note life-cycle, based on the same ISO standard as mentioned above, to determine the environmental impact of euro bank notes printed The Bank of Canada’s study suggests that polymer bank notes are more on cotton paper, comparing their effect on the environment with two environmentally friendly than their cotton paper equivalents in Canada. everyday activities: driving a car and turning on a 60 watt light bulb. The seven indicators defined by the ISO 1040 standard that the Bank put forward show a reduction of 30% or more in the environmental impact. The assessment came to the conclusion that the “environmental impact However, it should be noted that these findings are specific to Canada’s of euro bank notes over their full life-cycle is equivalent to that produced geography and distribution system, so similar exhaustive studies would be when a European citizen drives a car one kilometre or leaves a 60 watt necessary to quantify the environmental impact of a substrate change in light bulb on for half a day.” other countries, given that each country has its own unique features in terms of the manufacture, use and distribution of bank notes. In any event, As Martine Warren remarked, something similar can be said about the poly- the Bank of Canada’s study suggests the path to follow to address envi- mer bank notes issued by the Bank of Canada. “A concrete way of explain- ronmental concerns about central bank’s issuing activities and shows that ing the reduction in the environmental impact of polymer bank notes on all changing the bank note substrate is a significant feature in the parameters the phases of the life-cycle is to compare it with the impact of driving an to consider.

28 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 29

Opinion Environmental impact management. Security inks for bank notes Environmental impact management. Security inks for banknotes

René Berger y Brigitte Sheung SICPA, S.A.

SICPA’s concern for issues of quality, health, occupational environment. REACH makes it mandatory to register all the substances safety and natural resources is accredited its environmental businesses manufacture or import into the EU, and any unregistered management system’s ISO 14001 certification, and the com- commercialisation is considered illegal. Furthermore, toxicity and eco- pany’s having an environmental policy applicable to all its toxicity data have to be provided when registering substances. The entities. The SICPA group is committed to acting in a respon- implementation of REACH subjects all chemical substances to revalua- sible and efficient way in relation to the environment, with tion and reclassification. This regulation will therefore yield a fuller understanding of the chemicals used and help ensure that both manufactur- systematic monitoring and analysis of the environmental ers and end users take adequate precautions when dealing with the impact of its activities. most hazardous substances. Of the 30,000 substances historically inventoried, it is estimated that approximately 450 will be analysed by In the framework of the integrated management system, the 2020 and that, depending on their risks, some will be authorised and group’s system and processes are integrated in a single others restricted. structure with unified objectives. The management teams of all SICPA’s entities analyse their local systems in an effort to II. Significant milestones in the development of reduce the environmental impact of their activities, products environmentally friendly inks and services. Since the nineteen-seventies, SICPA has worked in partnership with its The environmental management system and policy applied customers to establish a series of prevention measures limiting the impact are continuously audited and reviewed to ensure the com- of the inks it manufactures on human health and the environment. In par- pany acts according to the national legislation in force, busi- ticular, these have included: ness needs and other requirements. 1970: Development of an intaglio ink cleaning system using water instead ■ of trichloroethylene. In addition to its main strategy, SICPA implements preventive measures to protect health and the environment from risks during the manufacture, Late-seventies: Development of new inks allowing bank notes to be print- transport, and use of inks and disposal of ink residues. The various work- ■ ed without the need for intercalated sheets to avoid ink smudging the ing teams continuously review process management through an analysis sheet underneath. of the environmental risks. 1980: SICPA eliminates lead from its formulations. I. The context: major change in awareness in the nineteen- ■ eighties 1993: Development of intaglio inks (S-12) suited to KBA NotaSys Orlof ■ machines, substantially reducing ink residues. In the nineteen-eighties many companies came to realise the importance of social and environmental responsibility, representing a shift away from Nineteen-nineties: New intaglio ink formulations are developed that are a traditional mentality focused solely on generating economic profits. This ■ adapted to cleaning-water ink-residue management systems consisting change led to a number of environmental initiatives. of separating the waste water from the solids for separate treatment.

Between 1990 and 1996, with the creation of the ISO 14001 and OHSAS 18001 standards, the requirements for the measurement and documenta- tion of occupational safety, health, and environmental impact were clearly defined. These standards were updated between 2004 and 2007, strengthening awareness of the environment, and health and safety at work.

In June 2007 the European Union (EU) brought in stricter regulations on activities involving the use of chemical products. This was the year the regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals –REACH1– came into force, governing the production and use of chemicals and their potential impacts for human health and the

1. System implemented by the European Union through Regulation (EC) 190772006 of the Par- liament and of the Council passed on 18 December 2006 and which came into force on 1 June 2007. This system obliges businesses manufacturing or importing chemical substances or preparations to assess the risks associated with their use and take the measures necessary to manage any hazards identified, so as to guarantee high standards of protection for the environment and human health. Elements / YB

BILLETARIA no 14 October 2013 29 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:57 Página 30

Opinion Environmental impact management. Security inks for banknotes

All chemical materials and substances used in the R&D phase, pilot production and industrial production are free of banned substances. SICPA has a clear communications policy and requires that supplies are in line with the exclusion criteria.

To establish a clear hazard classification for security inks, a data management, processing and communication system and procedures have been established. The system takes four different states into account: the substance, the raw material, fresh ink, and the final inks used in printed documents. On all levels, the legal compliance with the requirements is processed and studied through an Enterprise Resource Planning (ERP) system.

The system is continuously updated to include the latest reliable information, covering over 17,000 product references, 1,700 raw materials, and 2,500 chemical substances. This guarantees constant surveillance of the raw materials and the chemicals they contain, the priorities identified and Intaglio inks / SICPA possible changes in the hazard classification. It also envisages proactive substitution with new substances, raw materials and finished products. 2002: Creation of new ink versions compatible with long-lasting sub- ■ strates. Development that same year of inks yielding significant improve- The process’s output data make it possible to evaluate compliance and ments in printing processes and reducing their environmental impacts. pass on the results to customers and the regulatory authorities. When customers receive security inks they are delivered with health and safety 2002: Replacement of organotin catalysts used in the process of manu- data sheets that comply with the globally harmonised system of classifi- ■ facturing alkyd resins. cation and labelling chemicals (GHS) and European REACH regulations. These information tools have the aim of providing customers with clear Recently: information about the risks associated with products, and the precautions ■ that need to be taken during the handling, storage, and management of — Development of new dual-cure drying silk-screen printing inks with the security inks at printing works. ■ launch of SPARK® ink, which significantly reduces solvent content in its formulation, improves drying efficiency and minimises the quanti- The preparation of safety data sheets is also an ongoing activity. SICPA ties of volatile organic compounds (VOC) emitted to the atmosphere; ensures that accurate and up-to-date supply chain hazard information is provided to both the regulatory authorities and customers. This builds — more convenient formulation for printers using water-based inks for solid foundations for innovation in security inks, with a view to reducing ■ flexography and silk-screen printing; their environmental impact yet further. The design of new products when the cost and legal compliance, and safety and environmental risks are — development of “green” varnishes with new polymers to reduce VOC known, calls for significant coordination and communication efforts. ■ emissions;

— preparation of inks free of cobalt siccatives, reducing additive con- SICPA’s products comply fully with the legislation in force, they are safe ■ centrations. for use in printing works, and central banks have all the information they need for any communication considered to be in the public interest. Other measures implemented in ink manufacturing to optimise production efficiency and minimise ink residues, including aspects such as improving IV. Protecting human health the ink-to-substrate transfer, compatibility of inks with different types of engraving, printing presses, and a wide range of standard substrates and Ultimately, protecting human health is a matter of identifying and eliminat- other alternatives. These measures have helped make inks safer and ing substances that are –or are suspected of being– harmful to health. reduced their environmental impact. In the case of a printed product, the ink’s risk profile is different when it is III. Supply chain and product conformity fresh from when it is dry. During the printing process, inks undergo a physico-chemical transformation (polymerisation) that produces a dry At SICPA product conformity is based on an objective shared with the cross-linked ink. This reduces exposure to potentially hazardous sub- whole of the security printing industry, namely ensuring that everything stances considerably on coming into contact with a film of dry ink. involved in the various stages of the bank note and security document life- cycle is safe and everyone taking part is duly qualified. The ultimate objec- The two types of ink entail two different exposure scenarios: tive is to protect human health and the environment. — People who are frequently exposed to fresh inks (ink manufacturers, The challenges facing the product conformity policy include ensuring printers) are properly informed and trained in handling the substances transparency along the supply chain, excluding banned substances, involved. obtaining a complete profile of the materials obtained from suppliers, managing data collection processes, and proactively ensuring that prod- — People who are exposed to dry inks (cash handlers and the general ucts comply with the prevailing standards right from the initial stages of public) only come into contact with substances that are stable and are research and development (R&D). Lastly, systematic communications fixed in the ink. with suppliers and customers is based on mutual understanding. Complying with standards is not a one-off task that can be done once and In cooperation with its customers, SICPA proactively implements manage- for all, but requires a constant process of continual improvement through ment changes in order to ensure any modification to the ink formulations is changes and updates. made in a controlled and transparent way, even in the case of substances

30 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 31

Opinion Environmental impact management. Security inks for bank notes

not yet classified as hazardous, thus getting ahead of the legislation in security features to be incorporated, ink formulation, printing, transport, force. One specific example is that of bisphenol A (BPA). No foreseeable stock management, distribution, sorting, and finally, destruction when no risks have been identified in the use of BPA in bank notes. However, SICPA longer fit for use. Additionally, there is the supply of materials and ser- replaces raw materials containing BPA whenever possible with at least one vices relating to cash handling and waste recycling. substitute. It also limits its use and reduces the dosage to the bare minimum for exposure to be insignificant. Another example is the restriction of As a supplier of security ink, SICPA takes part in European working the use of certain photoinitiators, which are harmful to human health and groups at which the bank note life-cycle is evaluated. These evaluations hazardous to for the environment, which have been replaced by alterna- have the ultimate goal of making sensible use of natural resources, min- tives without this having an impact on product quality. imising environmental impact, and protecting human health during the production and supply of bank notes. V. Environmental protection measures implemented at SICPA’s production sites The findings of studies carried out by central banks show that bank note printing (including ink components) constitutes less than 20% of the glob- Some of the main measures include: al environmental impact of bank notes if their full life-cycle is evaluated. The results of these evaluations have shown the most significant impact to Manufacturing processes at SICPA’s production plants are controlled come from bank note transport and storage. The impacts are measured

■ and managed with a system optimised for quality and waste minimisa- based on the energy used and the resulting CO2 emissions from all the ink tion. and varnish manufacturing processes, together with bank note printing and handling processes. Cleaning solvent is recovered in medium-pressure distillation equipment. ■ Although the environmental impact of ink production is relatively slight, A high-performance air treatment system has been installed. SICPA continues to make efforts and take action to reduce it. For exam- ■ ple, circulation trials performed in a number of countries with bank notes VOCs are collected and incinerated. coated with a SICPA varnish have shown it to increase bank note durabil- ■ ity. Ink residues, commonly referred to as sludge, are incinerated in a cement ■ factory at SICPA, S.A. At other group factories, waste management is Apart from the bank notes developed in line with central banks’ policies on carried out by an accredited waste manager, in line with national legisla- the quality of circulating bank notes, SICPA has developed a range of dif- tion in each case. ferent inks for printing on long-lasting substrates, polymer substrates, and alternative substrates. These efforts are in line with central banks’ goals of Process water is treated on-site before being released to the local waste- extending bank note life, reducing replacement rates and causing less of ■ water treatment plant. an environmental impact.

Polyethylene terephthalate (PET), cardboard, wood, paper and ferrous VII. Conclusion ■ metals are collected for recycling by an authorised waste manager who takes care of selective recovery. SICPA, in line with the requirements of ISO 14001 and OHSAS 18000 Certification, reaffirms its commitment with the measures and practices Washing rooms have been set up for containers and utensils, using the underpinning environmental conservation. The majority of SICPA factories ■ latest environmentally friendly distillation technologies. and entities, and in particular those in Europe, are accredited with these certifications and all its other entities worldwide follow its corporate environmental policy.

As required under the European Union’s REACH regulations and the Swiss Chemical Ordinance, aspects relating to the protection of human health and the environment are subject to constant monitoring, and the company aims to ensure full information is available at all times concerning its customers health and safety requirements.

The company constantly strives to reduce the environmental impact of its production sites and its customers’ printing works, and to help optimise production.

New R&D results are offering new and better solutions for the world’s security printing industry, including technologically unique varnish formulations, water-based formulations, UV drying inks, and high-concentration Pieces of the puzzle / YB low residue rotogravure inks. These R&D efforts take developments in the In the packaging and transport area, SICPA security inks are distributed environment and safety regulations into account. in special cardboard boxes, in accordance with specific recycling requirements for European countries. The packaging has been designed to max- Lastly, the activities of the company’s management, environmental man- imise the amount that can be loaded onto freight containers. agement team, product legal compliance team, its progress in R&D, and the group’s approaches and activities are based on the fundamental belief VI. SICPA’s contribution to extending average bank note life in lasting and sustainable development that respects the environment and its customers’ activities. The company has a long track record of working The production and use of bank notes involves a wide range of issues and in partnership to achieve a more efficient and environmentally friendly processes: producing the substrates, design and origination, selecting the banknote manufacturing industry.

BILLETARIA no 14 October 2013 31 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 32

Banknotes and Coins The bank notes of Venezuela The banknotes of Venezuela

Jacquelín Bastardo Banco Central de Venezuela

Since it was founded in October 1940, the Banco Cen- The observe images front exalt Venezuela’s nationhood and ethnic origins tral de Venezuela (BCV) has fulfilled the monetary com- by honouring personalities and dignitaries who have stood out in petences assigned to it by the State diligently. As high- Venezuelan society, and for the first time, the image of a women and of popular heroes of African and indigenous descent have been included on lighted in the Monetary Conversion Decree of 6 March the bank notes. The reverse shows images of endangered native animal 2007, which mandated an adjustment to the series of species with a view to raising public awareness of the need for conserva- coins and notes to a new and smaller monetary scale tion and respect for national biodiversity. The landscapes accompanying over nine-month period, its main monetary duties are these images seek to reflect the country’s geographical wealth. to issue bank notes and mint coins. Producing all the bank notes and coins needed for the new series in under III. The highest denomination bank note a year exceeded the production capacity of the national The highest denomination bank note is the 100 Bs. It is multicoloured with mint, the Casa de la Moneda de Venezuela (CMV), mak- a strong presence of yellow and ochre hues. The obverse shows an image ing it necessary to procure the currency required from of the national liberator and founding father, Simón Bolívar, who was one foreign suppliers. Denomination Dominant colour Observe Reserve

I. General description of the bank note family 2 Bs. Blue Francisco de Miranda River dolphin

The new bank notes that came into circulation on 1 January 2008 repre- 5 Bs. Orange Pedro Camejo Armadillo sented a radical break with the series of bank notes and coins in circula- 10 Bs. Orange and blue Cacique Guaicaipuro Harpy eagle tion at the time. This was not only because of the smaller range of denominations used, but also because they incorporated a totally novel design, 20 Bs. Pink Luisa Cáceres Hawksbill based on a rich colour palette with a vertical scheme on the obverse, and de Arismendi sea turtle a horizontal composition on the reverse, including the image of an animal 50 Bs. Green Simón Rodríguez Spectacled bear against the background of a Venezuelan landscape. 100 Bs. Brown and yellow Simón Bolívar Red Siskin A multidisciplinary team at the Banco Central de Venezuela was in charge of bank note image selection, design and layout. The first break with tradition proposed for the whole family was the vertical design. This was used of the ideological proponents of Venezuelan and South American inde- only on the obverse, with an intermediate formula to introduce a notable pendence. The reverse shows the landscape of Guaraira Repano (cerro El feature without totally abandoning the horizontal tradition. All denomina- Ávila), highlighted in an orange tone, which was declared a national park tions of bank note are printed on a cotton substrate measuring 156 mm x on 12 December 1958. The design is completed with the image of a red 69 mm and with a weight of 1.034 g. in 2008 Venezuela’s bank notes won siskin, a bird hunted indiscriminately for its feathers, which are used for first prize for the best design awarded by the International Association of decoration, making it one of Venezuela’s most endangered species. Currency Affairs at the Currency Conference in Prague. This prize was a cause for celebration at the Banco Central de Venezuela as it reaffirmed Security features the commitment of everyone whose effort, talent and creativity had gone into the new family of bank notes and coins now in circulation. Intaglio printing: This is noticed on touching the bank note. On the ■ obverse, this feature is used for the text “República Bolivariana de II. Design Venezuela,” the denomination text, and the numbers in the top left, as well as in the image of the personality identifying the denomination. The The current bank note family of the Bolivarian Republic of Venezuela com- reverse it is used for the text “Banco Central de Venezuela,” the nation- prises six denominations: 2, 5, 10, 20, 50 and 100 bolívares (Bs.). al coat of arms, and the animal illustration. Structure of bank notes in circulation Watermark: The electrotype watermark image of the personality and ■ denomination (in numerals) show clearly when the bank note is held up Denomination Circulation* against the light.

100 Bs. 27 % See-through register: It comprises a graphical synthesis or drawing of 50 Bs. 20 % ■ an endangered species and a five-pointed star. It also includes the let- 20 Bs. 13 % ters “BCV” in microprint. On the reverse, when the banknote is held up 10 Bs. 14 % against the light, the tip of the star and the inner circle fill precisely. On 5 Bs. 12 % the obverse, the animal parts, star tips, and the inner circle have fluorescent yellow effects under UV light. 2 Bs. 14 % *June 2013 data. Latent image: Graphical elements related to the historical personality are ■ shown along the bottom edge of the obverse, under the image of the portrait. The 100 Bs bank note includes allegorical images of the epaulettes

32 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 33

Banknotes and Coins The bank notes of Venezuela

on Simon Bolivar’s uniform. When the bank note is tilted, depending on Reaction to UV light: On the obverse, fluorescent lines, background the angle of the incident light, the denomination can be seen in figures. ■ areas, and microtext can be seen. The denomination, expressed in numerals, can be seen repeatedly on the reverse. On the 100 Bs bank - Security thread: This is one of the main security features and is different note the number 100 is repeated at the edges, changing from light violet ■ in each denomination. The 100 Bs bank note has two threads. The first to fluorescent greenish yellow. is a 3mm wide windowed security thread (it enters and leaves the paper, with its effect visible only on the obverse). When held up against the light Multicolour fibres: Scattered throughout the paper, some are visible to a continuous strip can be seen in which “BCV100” can be read in vari- ■ the naked eye and others appear under UV light. ous positions in negative microtext. The thread also has a holographic effect that reveals the initials BCV and the quarters of the national coat Intaglio rainbow printing: The denomination expressed in letters and of arms when the bank note is tilted. Under UV light the text “BCV100” ■ numerals, located on the reverse, is printed in intaglio in a combination on the obverse turns a fluorescent greenish yellow, and on the reverse a of two colours. continuous strip of the same colour can be seen. The second thread is a 0.8 mm wide, continuous magnetic strip embedded in the paper.

Security background printing: Fine lines and allegorical drawings of the Statistical data* Bolívares Euros ■ denomination’s visual design, with microtext making digital reproduction Value of banknotes in difficult. circulation (millions) 85,115.6 10,269.9

Optically variable feature: On the obverse, when the bank note is tilted, Average value of banknotes 41.6 5.0 ■ the denomination appears in a number that changes colour depending in circulation on the incident light. This feature is not included in the 5 and 2 Bs denom- Number of banknotes 2,047.9 inations. in circulation (millions)

Markings for the visually impaired: These are geometrical figures print- Banknotes in circulation 70.8 ■ ed using intaglio: two circles for the 100 Bs bank note, one circle for the per capita 50 Bs bank note, two rectangles in the 20 Bs bank note, a square in the 10 Value of banknotes in circulation 5.20% Bs bank note, two triangles in the 5 Bs denomination, and a triangle in as share of the GDP the 2 Bs denomination. *June 2013 data

100 BOLÍVAR BANKNOTE

1. Multitone watermark 20. See-through register 22. Rainbow printing

12. Colour-shifting inks

4. Windowed security thread

7. Tactile markings for the visually impaired

6. Intaglio printing 9. Latent image 18. Fluorescent fibres 8. Colour gradation in intaglio

Note: The number shown beside each of the security features of the 100 bolívar bank note refers to that feature’s number in the “Bank note security features” section, which can be found in the MISCELLANEOUS section of issue 13 of BILLETARIA, where a more detailed description of each security feature is given.

BILLETARIA no 14 October 2013 33 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 34

Banknotes and Coins Treasury Department of the Banco Central de Reserva de El Salvador Treasury Department of the Banco Central de Reserva de El Salvador

César Roney Banco Central de Reserva de El Salvador

El Salvador is a Central American country with In the Central Bank’s structure, the various divisions report to the Office of the President. One of them is the Financial Operations Division, which has an area of 21,000 km2 and almost seven mil- three departments: 1) The Financial Department, responsible for the budg- lion inhabitants. The official currency is the etary and accounting areas; 2) the Payments and Securities Department, colón, which has a fixed exchange rate of 8.75 which handles bank deposit accounts, the real-time gross settlement sys- colones to the US dollar, which has been legal tem (LBTR) and the logistics of the import and export of US dollars; and 3) the Treasury Department. tender in El Salvador since 2001 for all the relevant purposes. Over the years the population I. Organisation of the Treasury Department has gradually come to use the dollar for all The Treasury Department comprises the Head of Department, with a sup- types of transactions, such that the colón is lit- porting secretariat, an analyst who processes and examines all the cash- tle used in the country today. related statistical information generated and coordinates the cash education programme, and a delegate who acts as joint-custodian of the Bank’s vaults. The Administration and Securities Deposit Section and the Cash Prior to the changeover, the Central Bank’s Services Section also form part of the Treasury Department. Treasury Department, formerly known as the Cash Department, with a staff of 83 employees, Administration and Securities Deposit Section handled cash processing. In 2002 there was a With a workforce of seven, this section is responsible for managing the fundamental change, with banknote process- vaults that store cash (in both Salvadorean colones and US dollars), secu- ing being delegated to commercial banks, and rities and documents deposited for safekeeping, counterfeit banknotes, the reorganisation of the Treasury Department, and the numismatic collection, etc. It also handles imports of US dollars and the preparation and delivery of surplus and unfit dollars for export. The such that today it employs just 22 people. custodians of the vaults are one of the section’s employees and a delegate of the Head of Department, who are responsible for the vaults’ content and for supervising withdrawals and deposits from and to it.

FINANCIAL OPERATIONS Cash Services Section DIVISION This section has 10 employees, who are in charge of receiving and supplying cash to and from the Banks. They handle an average of eleven oper- TREASURY ations a day. As the Central Bank is required by law to decide whether sus- DEPARTMENT pect banknotes received from commercial banks are genuine or counterfeit, this section carries out analysis and inventorying, and issues its opinion. It also assigns staff as instructors on the cash education programmes run by the Bank. SECRETARIAT ANALYST DELEGATE II. Features of the services to commercial banks

The Bank has an IT application called CIEM (Control de Inventarios de Especies Monetarias) to monitor banknotes and coins supplied to and CASH ADMIN. SERVICES AND SECURITIES received from financial institutions. When cash is received, the system SECTION DEPOSIT SECTION assigns a downloaded barcode to each packaging unit on a FIFO basis (first in / first out, starting with the fit banknote and continuing with the new one), using the same procedure as for withdrawals of banknotes by banks or banknotes sent to the United States Federal Reserve.

34 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 35

Banknotes and Coins Treasury Department of the Banco Central de Reserva de El Salvador

As the Treasury Department does not process cash, fit banknotes are deliv- Supplying and receiving cash ered to banks in the same form in which they were received from other financial institutions. In the event of any discrepancies, these are resolved Graphs 1 and 2 show the amount, in millions of US dollars, sent by the between the institutions in the manner and in time limits defined in an agree- banks, accompanied by the amount of unfit banknotes. The graphs also ment between them. This is made possible by the identification of the orig- show the amount of banknotes and coins required by the banks. inator on each packaging unit. III. Combating counterfeiting Sorting of supplied banknotes By law commercial banks are required to send any suspect banknotes to The Bank only supplies new and fit banknotes. It does not have rules gov- the Bank for analysis and a final opinion. erning other sorting standards, such as for ATMs. This is done by commercial banks using their own equipment or by contracting one of the cash- To avoid the fraud caused by counterfeiting, an education programme is in-transit companies (CITs) operating in El Salvador. in place, coordinated by the analyst reporting directly to the Head of Depart- ment. Training is delivered by the staff of the Cash Services Section. The Commitment to the customer programme aims to train banks’ cashiers through lectures and specialised workshops aimed at bank branch managers and supervisors, talks with Since 2006, in the framework of an institutional quality programme, the employees of businesses dealing with cash, and with high school students. Treasury Department conducts an annual survey of commercial bank treas- The latter group is addressed through visits to educational establishments urers and their delegates on cash transactions in order to determine their throughout the country. The training target is for at least 4,000 secondary expectations and degree of satisfaction with the service they receive. The students to be addressed each year. Information campaigns also run in the aim is to improve basic features, incorporating elements relating to secu- media. These tend to be more intense in the run up to the Easter holidays, rity, reliability, tangibility, responsiveness, and empathy. The feedback the national holidays (August) and new year, to guide the public on the char- received has been extremely valuable, achieving a commitment on the part acteristics and security features of US dollar-denominated banknotes. of all the Department’s staff to modify processes, overcome faults detected, and change the vision of the service. The Treasury Department also liaises permanently with the police and state prosecutor’s office on anti-counterfeiting matters, in order to spot trends The Head of the Treasury Department also calls and chairs a quarterly meet- in counterfeiting and draw up strategies against them. So far this year the ing with the treasurers of all the banks and CITs at which topics of interest banks have received an average of 702 counterfeits a month. The most are discussed, agreements struck and commitments made, concerns are frequently counterfeit denominations are the $20 and $5 banknotes. aired and strategies for improvement defined. IV. Constant vision and business continuity

Gráfico 1. Graph 1. Receipt and supply of banknotes in US dollars The Treasury Department manages risks associated with service continu- from/to banks in the financial system ity. Contingency plans have therefore been designed, and there is a commitment to make them more robust. 3,000

2,500 We are also working to continuously improve our service, and to modernise our processes and educational programmes. Work is currently underway 2,000 on appropriate forms of processing cólon denominated currency, efficient 1,500 distribution of coins denominated in US dollars, and exploring best prac-

US$ million 1,000 tice to ensure the public uses good condition banknotes and coins. The

500 way the counterfeit banknotes that have accumulated over time are to be handled is also being defined and an on-line registration mechanism for 0 2009 2010 2011 2012 suspect banknotes held by banks is being set up. Finally, in coordination Shipments with the Communications Department work is underway on setting up a of banknotes 1,970.11 2,104.91 2,424.53 2,647.92 museum displaying the Bank’s numismatic collection. Withdrawals of banknotes 1,616.32 1,756.10 1,994.68 2,322.01 Shipments of unfit banknotes 205.59 295.25 296.18 238.18

Graph 2. Receipt and supply of coins in US dollars from/to banks in the financial system

200 180 160 140 120 100 80

US$ million 60 40 20 0 2009 2010 2011 2012 Shipments of coins 13.44 9.02 13.15 52.83 Withdrawals of coins 168.78 179.30 181.64 181.66 Headquarters of the Banco Central de Reserva de El Salvador / BCRS

BILLETARIA no 14 October 2013 35 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 36

Banknotes and Coins The Museum of the National Bank of Belgium The Museum of the National Bank of Belgium Money and central bank museum

Marianne Danneel National Bank of Belgium

The Museum of the National Bank of Belgium rency and corporate history were reviewed and a whole new section on the present role and tasks of the central bank was added. Special atten- is not the only museum in Belgium with a tion was paid to the interaction between the three sections. Knowledge of numismatic collection, but it is the only one to the past helps us understand the present, thus the sections on the corpo- have money as its central theme. What is rate background and on currency history help the museum to give a clear- er message about the activities of the Belgian central bank today. money, how has money evolved through the ages, what role does it play in the economy and The 2002 renovation of the museum was nevertheless not restricted to its what tasks does the central bank perform in contents; a modern and educational display was set up, making full use of interactive devices, audio-visual presentations and multimedia. Finally, the this respect? Visitors can find an answer to all these questions via interactive and audiovisual presentations, as well as from the numismatic collection, money in its most tangible and at the same time most artistic form: traditional or commodity money, bank notes and coins.

I. Building

The museum is located at 9 Rue du Bois Sauvage, in the centre of Brussels, overlooked by Saint Michael’s cathedral. It is housed in the oldest section of the National Bank, in one of the capital city’s few 19th century bank buildings to have been kept in its original form. It was erected between 1860 and 1874 following the plans of architects Henri Beyaert and Wijnand Janssens. Although constructed in a somewhat classical style, reminiscent of Louis XVI’s period, the building has all the features of the architectural eclecticism of the time. Both the façade and the interior decor are decorated with images and symbols evoking economic concepts and national values. Since 2002, the ground floor of the historical official residence of the Governor has also formed part of the museum.

II. History

The Museum of the National Bank of Belgium was inaugurated on 14 Feb- ruary 1982 by the then governor, Cecil de Strycker. Its origins go back to more than 30 years earlier to the bank’s centenary celebrations in 1950. This milestone made the National Bank of Belgium’s management realise that keeping track of the institution’s history is an important part of its culture and identity. It was decided to reorganise the bank’s archives and to set down the first episode of the bank’s history-from its foundation in 1850 until the outbreak of the First World War in 1914-in writing. With the founding of a numismatic and bank historic museum in mind, a numismatic and historic collection was started. It has grown ever since, although it was another thirty-two years before it became accessible to the general public via a museum.

Considerable efforts were made to renovate and expand the bank’s museum when the euro was introduced in 2002. The existing sections on cur- Façade of the Museum of the National Bank of Belgium / BNB

36 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 37

Banknotes and Coins The Museum of the National Bank of Belgium

form of money, but also its establishment as legal tender and the constant increase in currency in circulation. In other words, the antique items in the bank’s collection make it possible to sketch out the broad lines of the monetary history of ancient times. Another example is the museum’s collection of commodity or traditional money that has been brought together to tell museum visitors the story of pre-monetary payment flows. These means of payment hail from all corners of the world. Only a few of these objects, such as the Celtic ring or wheel money and the Congolese means of payment, actually have a firm link with Belgian history.

Bank notes

It is nevertheless the bank notes that make up the lion’s share of the numismatic collection and this makes the National Bank of Belgium’s museum quite unique, in comparison with other Belgian numismatic collections. Here too, the collection policy was determined by the same criteria. Since its inception, the Belgian bank note, the National Bank of Belgium’s own prod- Exhibition room of the Museum of the National Bank of Belgium / BNB ucts feature prominently in the collection. The collection’s foreign bank - notes shed light on important turning points in the history of the bank note visiting hours were also changed, such that like most of the other Brussels or can be linked to specific phenomena such as hyper-inflation and cur- museums, the bank’s museum is open six days a week from 10 am to 6 pm, rency depreciation, wars and sieges, and so forth. When the Belgian bank - closing only on Mondays. The new museum opened its doors on a symbol- note collection was being built up, the greatest care was always given to ic date: the 28th of February 2002, the day the Belgian franc was irrevocably obtaining all existing variants, by collecting bank notes of the same type for replaced by the euro as legal tender. The event was part of the national instance, and assembling them with all consecutive signatures. awareness-raising and information campaign, set up by the Belgian authorities to accompany the launch of the single currency. From March to Decem- Since its foundation in 1850, the National Bank of Belgium has had the ber 2002, the National Bank of Belgium’s museum welcomed some 35,000 exclusive right of issue and therefore it alone has the authority to issue paper visitors. Since then, a further 275,000 visitors have come through its doors. money. The basis of the Belgian paper money collection is the bank notes which have over the years been passed on to the museum by other depart- In 2011, the museum and the Central Archives were brought together as ments of the bank, such as the Central Cash Office and the Printing Works. a working unit under the aegis of the Secretariat-General. In 2014-2015, The bank notes show traces of their passage: many of them are perforat- the historic building on the Rue du Bois Sauvage is due to undergo a com- ed, bear a handwritten note or a stamp; these are often bank notes or spec- plete refurbishment. The museum will take the opportunity to review and imens that have been taken out of circulation. update its permanent exhibition.

III. The numismatic collection

The bank’s collection currently features more than 60,000 items. Numis- matic items are the best represented. When the word numismatic is mentioned, it is generally coins that first spring to mind.

Coins

The National Bank of Belgium’s coin collection focuses on pieces minted or in circulation from Antiquity down to the end of the Ancien Régime in the Southern Netherlands; it mainly comprises coins from Brabant, Tournai, Hainaut, Limburg, Liège, Luxemburg, Namur and Flanders. From the outset, the objective was to bring all successive coin types from these regions together, rather than presenting a complete chronology of dates. Along- side these items, there is of course the collection of Belgian coins from

1832 to the present day. The collection of Belgian coins seeks to be as First 1,000 Belgian franc bank note / BNB exhaustive as possible, bringing together all the pieces ever been issued and thus covering the whole period. Possible variants and proofs are included as well. The latter are rarer than the actual coins themselves and allow a glimpse behind the scenes. They tell us about designs, denominations or issues that, although sometimes already at an advanced stage, never ultimately saw the light of day.

Despite the predominance of coins from Belgium’s own regions in the collection, the museum also posesses a small but highly significant quantity of coins that symbolise the major watersheds in the general history of the economy and currency, without there being any direct link with the country’s history. This explains, for instance, why the museum has a small collection of Greek coins, even though they have never actually been in circulation on Belgian soil. The Greek coins are Europe’s oldest, and in turn influenced the later Roman coins. Antiquity not only saw the origin of currency in the 500 franc banknote of the last series of Belgian franc banknotes / BNB

BILLETARIA no 14 October 2013 37 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 38

Banknotes and Coins The Museum of the National Bank of Belgium

The bank note collection has all the features of a corporate collection and this event by letting its museum participate in one particular project. The is not just limited to banknotes that have been in circulation. In addition, it project had an artistic as well as an educational aspect and thus fit in with contains bank notes that were actually finished, but for some reason or other the museum’s philosophy and mission. Another example comes in the form were never put into circulation; it also features the full series of preliminary of the heritage weekends which are - as in most European countries - held designs, drafts and proofs which preceded bank note issues. These are in Belgium on a national scale every year. The bank supports the initiative items that were gradually transferred from the Printing Works to the muse- by opening its historical premises (the official residence of the Governor in um after its opening in 1982. 2009 and 2013) to the public and by mobilising the museum’s staff to organise this “open house”. The collection not only includes designs and proofs, but also a whole range of printing material, such as engraving plates (clichés), glass plates and watermark forms. Over the years, numerous archive documents, comprising correspondence, reports, accounts and audits, have also landed in the bank’s museum. It goes without saying that the combination of all these documents, sources and objects provides a wealth of information, not just about the bank note in the strict sense of the word, but also about official Belgian art and its symbolism, and even about the country’s political, economic and intellectual history.

IV. Activities

Visits to the Museum Observe (left) and reverse (right) of the stater of Cyzicus (550-475 B.C.) / BNB The permanent exhibition is the main link between the museum and its visiting public. Individual visitors can become acquainted with its contents In order to contribute to cultural life in Brussels, the bank has entered into by means of information panels, audio guides and interactive devices. The a partnership with the Brussels Museum Council. The bank’s museum is National Bank of Belgium considers the world of education as one of its expected to play an active role in its work. Among the things the Brus- most important communication target groups. All school groups are there- sels Museum Council coordinates is the annual Brussels Museum Night, fore given a free guided tour by the museum’s educational staff. They range the late-night openings (‘nocturnes’) and the activities for families with from primary school children to university students. Children from primary children. The National Bank’s museum plays an active part in all these schools are invited to use worksheets while students from secondary events. schools are given guided tours adapted to their age and level. Before an audience of university students, the guides vary their approach and the Temporary exhibitions topics dealt with, depending on their fields of interest. The museum also offers visits designed to cater for adults with low levels of schooling who The museum also organises temporary exhibitions on specific themes on a may normally be less interested in visiting museums. These visits take a regular basis, either on the occasion of a national anniversary or in part- very practical approach, with examples of their day-to-day lives contributing nership with another collection, from Belgium or elsewhere. to a better understanding of money and banking. An information package is available to teachers, giving them a useful material with which to pre- In the year 2000 for instance, the museum organised respectively in Ghent pare or follow-up the visit in the classroom. Guided tours are mainly given and Brussels a prestigious, international exhibition on the theme of the cur- in French and Dutch but tours in English and German are also possible on rency and finances of Charles V (‘L’escarcelle de Charles Quint. Monnaies demand. Groups are requested to book in advance in order to make it et finances au XVIe siècle’) in close cooperation with a whole range of possible to plan the guides’ work schedule and the flow of visitors through domestic and foreign museums. In that year, Brussels was proclaimed one the museum. of the Cultural Capitals of Europe and it also happened to be the 500th anniversary of Charles V’s birth in Ghent. The richly illustrated exhibition Participation in cultural activities catalogue is one of its enduring products.

Apart from the permanent museum exhibition, a policy of gradual but pro- Another example is the 2011 exhibition entitled ‘Of gold and feathers. gressive activation of the historic collection has been adopted in order to Exchange and value systems in Brazil’, with which the National Bank of contribute to the National Bank of Belgium’s cultural activities. The bank Belgium, along with the Banco Central do Brasil, took part in the Europalia traditionally supports a limited number of cultural initiatives, arranged by Brasil festival. A catalogue for this exhibition was also published. public authorities or organisations of public interest and, in doing so, it often relies in one way or another on the Virtual exhibitions infrastructure or the knowhow of its museum. For instance, when the Finally, two virtual exhibitions can be visited permanently on the museum’s city of Bruges was one of the Cul- website; they present the entire collection of traditional money and the col- tural Capitals of Europe in the year lection of Belgian emergency money from the First World War, an event 2000, the bank decided to support which will be widely commemorated in Belgium in 2014-2018.

Useful information Museum of the National Bank of Belgium - Rue du Bois Sauvage 9 - 1000 Brussels Telephone: +32 2 221 22 06 E-mail address: [email protected] - Website: www.nbbmuseum.be Opening hours: Tuesday to Sunday from 10:00 to 18:00 Closing dates: 1 January, 1 May, 1 and 11 November, from 24 to 31 December Mokko, the traditional cash of Indonesia / BNB

38 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 39

Banknotes and Coins Guatemala’s Numismatic Museum Guatemala’s Numismatic Museum Ricardo Martínez Banco de Guatemala

The earliest predecessors of Guatemala’s numismatic history were the objects used as means of exchange or barter during Pre-Columbian times, such as jade, obsidian, exotic feathers, skins and salt. These items from the Guatemalan highlands have often been found in excava- tions in the Petén lowlands, having arrived there via the well worn trade routes that existed at the time, along which the use of certain goods, such as cacao, spread and became commonplace.

The minting coins in Guatemala began in 1733, the year in which the Real Casa de Moneda came into operation in the city of Santiago de los Caballeros de Guatemala, known today as Antigua Guatemala. As a result of the earthquakes the region suffered, in 1773 the mint was relocated to Nueva Guatemala de la Asunción, the modern

capital of Guatemala. The first Banco de Guatemala bank- The Guatemalan Numismatic Museum / BG notes were issued in 1874. Since then, numerous coins, medals and banknotes have been put into circulation, and This room shows products such as cocoa, skins, feathers from exotic birds, many of them can be seen in the collection on display in obsidian, salt, shells, ceramics and jade, which were highly prized and wide- the rooms of the Guatemalan Numismatic Museum. ly accepted in most regions. Colonial Era room I. The Museum In 1524 Spanish colonists arrived in Guatemala and began their conquest The Numismatic Museum’s main purpose is to safeguard and conserve of the region, waging war on the Quichés and other Guatemalan peoples. Guatemala’s numismatic history and make it available to the public. The Initially the coins the Spaniards brought with them were used, but as a result Banco de Guatemala has always considered founding a museum sum- of their being in short supply and the demands of the vibrant trade accom- marising this history to be important, and so the Banco de Guatemala’s panying the rapid population growth, it became necessary to create a mint Monetary Board, its highest authority, passed resolutions in August 1978 to provide the new kingdom with coins. Thus, the first mint was founded and November 1992 authorising the museum’s creation. The plans for the in 1543 to legalise the minting of coins and levy the Quinto Real or “Kings museum came to fruition on 11 July 2006, when it opened its doors to fifth” on precious metals. At this time coinage imported from other territo- mark the celebrations of the eightieth anniversary of the Guatemalan cen- ries began and mints were founded in the Americas in Mexico, Lima (Peru) tral banking system’s creation. and Potosí (Bolivia).

The museum is located on the first floor of the Banco de Guatemala’s head- King Philip V authorised the founding of the Guatemala mint by a Royal quarters building in Guatemala City. Its installations occupy the hall that Decree on 17 January 1731, with coin minting starting in 1733. The coins was formerly used to provide banking services to the public. For this reason, from the Guatemalan mint were marked with a “G”, which was changed to the exhibition includes the cashiers windows used for lodgements and with- an “NG” when the city was moved to Valle de la Ermita in 1776. The new drawals in the days when the Bank served the public, the pneumatic trans- mint continued producing Spanish-style coins until the end of the Colonial port tubes for the mail and the operations vault. era. This room exhibits the coins minted during this period, together with engravings showing scenes of daily life and events from the period of colo- The museum has 2,145 items on display, comprising 1,236 coins and nial domination. medals, 570 banknotes, share certificates and promissory notes, and 339 pieces of minting and printing machinery, engravings and old paintings. Independence and the Central American Federation room The Guatemalan Numismatic Museum occupies seven rooms with a floor space of approximately 686 m2. The rooms are arranged so as to present The former provinces of the Kingdom of Guatemala gained their inde- the history of money in Guatemala in chronological order. pendence from the Spanish crown on 15 September 1821. The Central American Federation, comprising Guatemala, El Salvador, Honduras, Prehispanic Era room Nicaragua and Costa Rica, issued a Decree on 1 July 1823 declaring its absolute independence not only from Spain and Mexico, but from any other The establishment of land, river and maritime trade routes made it possi- country that might want to rule over them, and took the name of the Unit- ble the arrival of a range of products to all corners of the powerful Mayan ed Provinces of Central America. The Federation’s first coins were minted empire. Thus, products from the Petèn lowlands travelled to the western in 1824. A Decree of 19 April of that year gave sole authorisation to the highlands, and vice versa. The rarity of these items meant they came to be Guatemalan Casa de Moneda or mint to produce the coins in circulation used as a measure of value in exchanges with other goods. in the Federation.

BILLETARIA no 14 October 2013 39 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 40

Banknotes and Coins Guatemala’s Numismatic Museum

Republic of Guatemala room November 1924, beginning again the issue of paper currency and coinage with a variety of denominations and designs. In this room some of the first Guatemala was founded as a republic on 21 March 1847, after breaking examples of Guatemala’s national currency are on display. away from the Central American Federation. This era is considered one of the most interesting in numismatic terms, on account of the variety of coins Also during this period, Government Resolution of 30 June 1926 was issued making the “Caja Reguladora”, which was intended to prepare the conversion of national currency and organise the monetary system, the Banco Central de Guatemala, incorporated as a mixed-capital entity with the exclusive authority to issue currency.

Banco de Guatemala room

There was further monetary reform in 1944, leading to the founding of the Banco de Guatemala as the central bank, which came into operation on 1 July 1946.

After receiving authorisation on 15 September 1948, the Banco de Macuquina coins of the first type minted in Guatemala during the reign of Philip V and Fernando VI / BG Guatemala put its own banknotes into circulation. These new banknotes were the same size as those already in circulation but bore new designs. minted and the acute shortage of currency in circulation, which was a result In 1949 the coins were redesigned to include the motifs still in use today, but of the Casa de Moneda’s erratic operation. After 1851 it became necessary which have undergone minor changes over time. Since July 1954 the Banco to use foreign currency from England, the United States, France, Chile and de Guatemala has been responsible for minting fractional coinage, such Costa Rica. that the Casa de Moneda is now under its aegis.

Other key features of this period that can be seen in this room of the Minting room museum included early output from the refurbished Casa de Moneda in 1859, headed by a Swiss expert, Juan Bautista Frener, and the founding The museum includes a recreation of a minting room in which there is a of private banks (Americano, Occidente, Colombiano, Guatemala) which, replica of a colonial-era hammer minting machine from the 18th century. like the state banks, began issuing banknotes. At this time private cur- The exhibit shows visitors the process and way in which coins were mint- rency in the form of tokens known as “fichas de finca” also began to cir- ed during that period. A screw press, which once formed part of the Casa culate. The first banknotes came into circulation in 1872 during the gov- de Moneda’s old minting equipment and was manufactured in Italy in the ernment of Miguel García Granados. These banknotes bore the current second half of the 19th century is also on display. This press was profes- national coat of arms and were the work of the Casa de Moneda’s sionally restored so that the public can see it in as close to its original state engraver, Juan Bautista Frener. Examples of these banknotes are on as possible. show in this room. II. Museum activities and future plans Banco Central de Guatemala room The Guatemalan Numismatic Museum is a member of the Guatemalan One of the most significant events in the country’s economic life was the Museum’s Association (Asociación de Museos de Guatemala, AMG) and monetary reform embarked upon by General José María Orellana in 1922. the International Council of Museums (ICOM), and it participates in all the It was at this time that Guatemala’s current currency, the Quetzal was cre- activities that these institutions run, such as international museums day and ated as the country’s new currency, instituted with resolution No. 879 on 26 international museums week. It also organises itineraries to visit the items on show and runs other activities during museums month.

One of the museum’s projects that is worth mentioning in particular is the display of banknotes from various countries that have been included in the exhibition space since September of this year.

Lastly, as of 2014 the museum will start to be relocated to the building that housed the Real Casa de Moneda from 1771 to 1773 in the city of Antigua Guatemala, which was the capital of the Kingdom of Guatemala from November 1527 until July 1773.

Useful information Guatemala’s Numismatic Museum 7ª. Avenida. 22-01, zona 1, Ciudad de Guatemala Plaza “Carlos Mérida” Tel: 2429 6000 ext.: 5248-5249 Website: http://www.banguat.gob.gt/museo/index.htm Opening hours: Monday to Friday: 9.00 a.m. to 5.00 p.m. Minting room / BG

40 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 41

Miscellaneous 9th International Course on Cash Management. BANCO meeting in Bratislava 9th International Course on Cash Management

The 9th edition of the International Course on Cash Management (CIGE) was held at Cercedilla (Madrid) from 2nd-7th June 2013. The course, organised by the Banco de España’s Cash and Issue Department, was attend- ed by 22 students from 16 countries, with 20 high-level instructors of 12 different nationalities, drawn from central banks and other public and private organisations.

The opening session was led by Javier Alonso and Francisco Javier Priego, Director General for Operations, Markets and Payment Systems and Gen- eral Secretary of the Banco de España, respectively.

Given the international nature of the course, talks were presented in Span- ish, Portuguese and English, with simultaneous translation.

The structure of the course followed the same approach as in previous years, with the first three days dealing with the basics, such as the concept and history of money, design and manufacture of bank notes, monetary income, Treasury Department operations, anti-counterfeiting meas- Opening session of the 9th CIGE / BE ures, etc. The academic content was complemented with visits to sites of interest, such as the Fábrica Nacional de Moneda y Timbre (FNMT-RCM) Information and Secretariat bank note printing works, and the Banco de España’s cash-handling facil- Banco de España – Cash and Issue Department ities in Madrid. Alcalá, 522 / 28027 Madrid On the fourth day, projects implemented by working groups designated at Tel: +34 91 338 6310 / 7091 / Fax: +34 91 338 6887 the start of the course were presented and discussed. On the final day E-mail: [email protected] there were master classes by experts including Edgar L. Feige, emeritus professor at the University of Wisconsin, Michael J. Lambert, Associate Director of the United States Federal Reserve, Helmut Rittgen, Head of the Deutsche Bundesbank’s Cash Department, Alejandro Alegre, Director Gen- eral of Issuance at the Banco de México, J. Darío Negueruela, Director of the Cash and Issue Department at the Banco de España.

Along with the academic side of the course, a number of social and cultural activities were arranged, such as a visit to the Royal Monastery at El Escorial.

The closing ceremony and presentation of diplomas was presided over by Alejandro Alegre, Fernando Sánchez, CEMLA Central Banking Progammes Direc- tor and Jaime Sánchez, President of the FNMT-RCM.

CIGE is aimed at mid-level technicians and professionals in central bank cash departments in Latin America, and has become a global benchmark on cash matters. This year’s edition maintained the excellent level of its predecessors, the high academic level of some of the debates triggered during the course standing out, together with the practical and accessible approach to the topics covered, the topicality of the subjects presented, and the active participation of students in debates, during which experience and ideas were exchanged. Students and instructors were favourably impressed by the course’s organisation, facilities, and the series of activities, which allowed highly enriching professional and personal contact between participants. BANCO meeting in Bratislava

From 18th to 21st September 2013 the Bank note Committee (BANCO) of the European System of Central Banks (ESCB), comprising representatives of the ECB Banknotes Directorate, and cash departments at the national central banks of the European Union countries, met in Bratislava, the capital of Slovakia.

The meeting was part of the Committee’s annual calendar of events, as it traditionally meets outside of Frankfurt am Main once a year. On this occasion the event’s host was Národná banka Slovenska, the Central Bank of Slovakia, which demonstrated its hospitality and organisational capacity.

Photograph of the group of participants at the BANCO meeting in Bratislava / NbS

BILLETARIA no 14 October 2013 41 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 42

Miscellaneous The carbon footprint

The carbon footprint is a measurement instrument used to determine, evaluate and report the impact of products, services and organisations on climate change. Specifically, it refers to the total carbon dioxide (CO2) emissions associated with a set of activities carried out by a person or other entity (an organisation, country, etc.). Both direct emissions, produced by burning fossil fuels during the manufacturing, heating, and transport processes, and indirect emissions from generating the electricity needed to produce the goods and services consumed in these processes are taken into account in the cal- culation. The concept of "carbon footprint" also includes emissions of other greenhouse gases, such as methane, nitrous oxide, and chlorofluorocarbons (CFCs).

The carbon footprint contributes to:

the quantification, reduction and offsetting of CO2 emissions from products and orga- ■ nisations in the framework of climate change mitigation; the creation of a market for low-carbon products and service to respond to demand from ■ society and current environmental management standards; the identification of cost saving opportunities for organisations; and ■ demonstrating to third parties the organisation's commitment to social responsibility in ■ relation to climate change mitigation.

BILLETARIA

(cont. from previous page 8) plate system, CTiP) which replaced the traditional, time-consuming process using copper. As for our own plants and processes, the Banca d’Italia Printing Depart- ■ ment has traditionally followed an integrated approach to never-ending Secondly, we handled the production of both dry and wet offset plates by technological progress. This policy, based on taking a broad view, is ■ means of laser treatment (with a computer-to-offset-plate system, CToP). inspired by the awareness that technological advances lead not only to In both cases, as expected, significant improvements in quality and flexi- qualitative/quantitative improvements in production, but also to a reduc- bility were achieved, as well as non-negligible enhancements in environ- tion in environmental impacts and to improvements in workers’ health and mental performance due to the elimination of copper from wastewater (in safety. An eye is also kept on the resulting cost reductions, which, in most the case of CTiP) and the reduction of volume of exhausted developer and cases, go hand in hand with this approach, leading to a virtuous circle. fixer solutions (for CToP).

As example of progress in process technology combined with reduction The latest improvement in pre-press techniques, and which is really a ■ of both environmental impact and cost, we can recall our past experience ■ breakthrough for Banca d’Italia, is the “Green” project to design, install with the treatment of the wiping solution for the intaglio printing machine. and validate a physical vapour deposition process to deposit chromium- In the late 90s, long before implementing any EMS, we began a pioneer- based film onto nickel intaglio plates. The new technique avoids the use ing study on recycling the wiping solution and started a pilot plant that of chromium (VI) hence, apart from the significantly reducing the health has been in continuous operation since 2000. This recycling process, risks for workers, it also enables significant benefits on the environmen- which is still a simple and valid alternative to more sophisticated ultrafil- tal side. tration techniques, depends on a flocculation plus sedimentation process and lets us recycle up to 90% of the wiping solution. Now, in order to further reduce the environmental impact of intaglio printing, we have just III. Summary and conclusions modified the wiping system inside the intaglio machine to reduce the wiping solution consumption (30% expected reduction, to be confirmed on an Production of bank notes has multiple significant environmental annual basis). Despite such initiatives, water management still remains aspects/impacts, the most important of which are consumption of ener- one of the most significant environmental aspects and so, during 2012, gy and natural resources, production of waste, wastewater and air emis- we designed and built a plant enabling most of the cooling water to be sions. Evaluating these impacts is the basis of implementing an recovered and reused. Improvement of the corresponding environmen- Environmental Management System focused on continual improvement. tal aspect is expected to be revealed in the years ahead and will be quan- The Banca d’Italia Printing Department manages and monitors its signif- tified in the next environmental aspect/impact evaluation. icant environmental aspects by means of a detailed analysis, split up into individual activities, which include quantitative data, legal obligations, Nevertheless, as of 2006 the most noteworthy technology advances have feasibility of impact reduction. Environmental improvements can be pur- ■ been made in the field of pre-press activities, where Banca d’Italia has sued mainly through structural interventions and technological always been at the forefront. advances, taking an integrated approach that, in most cases, positively affects quality and, at the same time, health and safety. Here we have The laser-assisted digital techniques involved, firstly, the production of described some successful past initiatives, as well as ongoing activities ■ intaglio plates using Kapton® engraving (with the computer-to-intaglio- whose results will emerge in subsequent analysis.

42 BILLETARIA no 14 October 2013 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:58 Página 43

Miscellaneous Readers give their views on BILLETARIA. CPC

Readers give their views on BILLETARIA

Last May BILLETARIA’s readers were sent a questionnaire in electronic for- Many respondents said they would like to see more articles from Africa mat asking for their opinion on various aspects of the journal. We would ■ or Asia, reflecting their vision and understanding of the cash manage- like to express our sincerest thanks for the interest shown (the number of ment world. replies far surpassed our initial expectations) and the time readers took to Thematic issues: most respondents were in favour of BILLETARIA’s pub- complete the questionnaire. The comments, criticisms and assessments it ■ lishing specialist thematic issues looking in more depth at an issue from produced represent a valuable source of information that will help us match various viewpoints. We are also grateful for the many suggestions of top- the journal’s content and format to our readers’ needs. ics received, which we shall take into account in the selection of topics for future thematic issues. The analysis of the replies received shows BILLETARIA to enjoy a favourable reception and to be positively valued by its readers, who gave it a score of On the subject of distribution, our readers are increasingly in favour of receiv- nine out of ten. The aspects of the publication evaluated by the survey ing the journal in electronic format. Factors in its favour are the immediacy respondents included: of delivery, lower distribution costs, and the ease of storage. This request is in line with BILLETARIA’s own interest in reducing and controlling the The format: a high proportion of replies (98%) liked (9.6 out of 10) the journal’s production and distribution costs as far as possible, without totally giving up the paper edition. ■ journal’s size, design, structure and number of pages. The presentation of the articles: most respondents (97%) considered the To conclude, it is worth noting that over and above the specific issues raised ■ texts to be set out in a clear and accurate way. They also considered in the survey, many of our readers took the opportunity to send us their topics to be covered in sufficient depth and breadth, and with an appro- personal views on the journal. We are sincerely grateful for the numerous priate level of technical detail for its readership. messages of warm support received and are committed to redoubling our efforts to continuously improve the journal. In general, our readers told us Contents: within the variety of subjects covered in BILLETARIA’s sec- they found the publication to be extremely useful, and that its content, and ■ tions, the articles on design, manufacturing and security, and anti-coun- the breadth of topics and countries covered were of interest. Many of them terfeiting were those readers found to be of greatest interest (92%). The said they looked forward to the next issue and stressed the role of section on banknote security features in the “Miscellaneous” section also BILLETARIA as a resource, source of information, and of contacts between received a particularly high score (9.8 out of 10). professionals in the currency world.

Some aspects evaluated Score Preference for thematic issues Interested in receiving Paper quality 9.5 the review in electronic format Number of pages 9.2 Font type and size 9.1 3%3% 5%5% Photographs, graphs and tables 9.0 Cover design 9.0 Structure and clarity of articles 8.9 Articles on “Design, manufacture and security” 9.4 97%%97 95%%95 Articles on “Anti-counterfeiting measures» 9.0 Articles on “Infrastructure and organisation” 8.9

Space dedicated to the description YES NO of banknote security features 9.8

BILLETARIA no 14 October 2013 43 BILLETARIA-INGLES_14_v9_Maquetación 1 18/11/13 08:59 Página 44 A I R A T E L L I B

Chinese map of the world (1763), copy of the map of the voyages by the mariner Zheng He, purported to have been drawn in 1418. BILLETARIA YEAR VII ISSUE 14 OCTOBER 2013

BILLETARIA Secretariat October 2013 Cash and Issue Department, Banco de España Alcalá, 522 Published by 28027 Madrid Banco de España / Cash and Issue Department Tel.: +34 91 338 6310 www.bde.es Fax: +34 91 338 6887 Editorial Committee J. Darío Negueruela Manuel Galán The opinions expressed in the articles published here are those of their authors and do not necessary reflect those Wolfgang Söffner of their respective employers or the Banco de España, Bernardo Calvo unless otherwise stated. Editorial Staff Reproduction of the content of BILLETARIA, in whole María Luisa Leyva or in part, is permitted, provided the source is María José Fernández acknowledged. Víctor Andrés Fernando León For subscriptions and contributions, please contact: María Eulalia Andonegui [email protected] José Moreno © Banco de España Ángela Benítez Legal deposit: M-45.124-2010 Marina Pérez Printed in Spain, by Artes Gráficas Palermo, S.L.

Printed on EU Ecolabel (No. FR/011/003)