Bank of England wants to see more £5 notes in circulation

How long has it been since you’ve seen a £5 note? Probably too long, according to the Bank of England.

The Bank says that it currently has £1 billion worth of the £5 notes in its vaults. Meanwhile, the £5 notes in circulation are dirty and in poor condition because they have been out there changing hands for so long.

The governor of the Bank, Mervyn King, said that circulation of the notes has not gone up in 15 years and those that are in circulation stay in the banking system twice as long as they used to. He said that while the total amount of cash in circulation has grown to £40 billion, the amount in £5 notes remains at around £1 billion of that amount.

Banks are apparently circulating £10 and £20 notes at a higher rate than the £5 notes because stocking cash machines with the tens and twenties means that the machines must be refilled less often.

With 60 percent of cash now being distributed from the ATMs, it has become more difficult to get the £5 notes out into circulation. Mr. King said that there is a need to have the smaller notes in circulation in order to make smaller transactions.

The British Bankers Association has said that it is willing to discuss the problem with the Bank.

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