Demand for banknotes at its lowest in 20 years

BANKNOTE maker De La Rue has said that demand for currency around the world is at its lowest level in 20 years.

The company, which designs a third of banknotes globally, said demand for cash had fallen since Covid.

It said that this was “causing a significant degree of uncertainty” and meant its full-year profits would fall short of expectations.

The firm is having to renegotiate its loan agreements with its banks due to the tougher trading conditions.

While the UK saw a rapid decline in the use of cash during Covid lockdowns as online retailing soared, other countries in the developing world continued to use notes and coins.

But since then demand for cash has fallen everywhere, as people have shifted to using card – and particularly contactless – payments.

De La Rue said there are signs of recovery but is not sure when that will happen.

“The demand for banknotes has been at the lowest levels for over 20 years, resulting in a low order book going into fiscal year 2024,” it said.