Banknotes
Banknotes are conventional medium of exchange used in trade and financial obligation settlements. At present, sophisticated development in electronic-settlement, credit card, and direct debit systems have substantially reduced demand for banknotes and the burden of printing money. Yet, banknotes still play a vital role in lubricating the domestic economy. As of end-2012, outstanding volume and value of circulating banknotes in the financial system were at 4.81 billion notes worth THB1.399 trillion.
The Bank of Thailand targets annual banknotes supply in accordance with economic conditions and demand for each denomination of banknotes. In order to maintain confidence in the value of printed banknotes, the BOT strictly complies with the Currency Act B.E. 2501, requiring all circulated banknotes to be fully-backed at all time by Currency Reserve. Legitimate components of Currency Reserve include gold, certain foreign currencies, foreign securities, and other assets prescribed by the law. Currency reserve must be maintained and kept in separation from other BOT’s assets so as to ensure that the amount of circulated banknotes does not outpace value of existing currency reserve.
Freshly printed banknotes from the BOT’s Note Printing Works will be transported to 10 Banknote Operation Centers nationwide. Each center will distribute new banknotes through cash centers of commercial banks, which will eventually pass on these new banknotes to the general public through branches of commercial banks. Moreover, BOT’s Banknote Operation Centers also redeem damaged banknotes, verify authenticity, and destroy banknotes that are not in shape for circulation.
Although damaged banknotes cannot be used for legitimate financial settlement, they can be exchanged for new banknotes in case the damages meet BOT’s criteria. The exchange can be made at all branches of the Government Savings Bank on all working days and at branches of commercial banks nationwide (except at sub-branches and branches in department stores) every Wednesday. For more information about damaged banknotes, please contact Banknote Verification Section of the Banknote Management Group at Tel: 0 2356 8736 to 8737.
To distribute pictures of banknotes through any form of media, an official request along with artwork samples must be submitted to the BOT for consideration. Unauthorized usage of banknote pictures or imitation of banknotes would be considered violation of copyrights and could lead to legal charges.
To use pictures of banknotes in any media, position of the banknotes must not attaint the Monarchy and the Bank of Thailand in any way. General guidelines for using pictures of banknotes are:
- Display only parts of banknotes, not fully exposed banknotes, or
- Display in other angles than direct view of banknotes and
- Display in black & white
- In case banknotes are displayed in color or in direct view, the size of the picture must be explicitly smaller or larger than actual banknotes.
Should there be any query regarding usage of banknote pictures, please contact Tel: 0 2356 8689 to 90.