
The Bank of Thailand has requested consumers use banknotes that are already in circulation to mark special occasions rather than demanding newly printed ones to allow for the longer time frame that banknotes are now in circulation.
The present banknote circulation cycle -- known as a first-in, first-out cycle -- means banknotes are in circulation for around 10% longer than in the past. The extended turnover is primarily attributed to the increase in digital payments and the improved quality of banknotes.
As a result, the rate at which banknotes become damaged has decreased, meaning they can remain in circulation longer.
People previously complained about a shortage of newly printed banknotes used for Ang Pao or red envelopes during the Chinese New Year festival.
"The central bank expects consumers to gradually change their behaviour regarding the use of cash for special occasions by using existing banknotes that are in good condition instead of demanding newly printed ones," said Somboon Chitphentom, assistant governor for the Bank of Thailand's banknote management group.
People often prefer newly printed banknotes for Ang Pao payments or wedding ceremonies, creating strong demand for 1,000-baht notes. However, this expectation can be adjusted, Mr Somboon said.
The 1,000-baht banknotes are less prone to damage than other denominations, such as 20-baht and 100-baht banknotes, allowing 1,000-baht banknotes to remain in circulation for longer, he said.
Mr Somboon said the central bank's new banknote production level reflects actual demand. Although the annual production of new banknotes continues to grow, the growth rate has declined because of the increasing popularity of digital payments, he said.
The growth rate of new banknote production is around 2-3% per year compared with 6-7% in the past, said Mr Somboon.
The production cost of new banknotes has increased because of advanced technology to prevent counterfeiting and the higher quality required to ensure the banknotes have a longer lifespan.
The raw materials for the production of banknotes, including the paper and ink used in the printing process, are imported.
The central bank produces 20-baht banknotes using polymer materials, which utilise improved technology and produce better quality banknotes.