In the past, central banks worked on the assumption of coin life being 25 to 30 years duration. This concept has now changed due to a variety of reasons.
In some Nordic countries, Korea and Australia coins are quickly being replaced by electronic transactions. However, in some Asian countries, although electronic transactions are becoming popular, coin demand is still high either due to the introduction of new higher denomination coins or because of their supply chain system requirements. Some other parts of the world are addressing the challenge of higher inflation or coins being outdated through replacing their old coins. These scenarios are steadily increasing the volume of old and/or outdated coins.
Old and/or unfit coins are dead asset. Storing them for longer time periods should be avoided in today’s economic world. This paper will outline a step by step approach to addressing the old and/or outdated coin issue to maximise opportunities for Central Banks.