Bank notes, borrowing and OMO
Dear Bank of England,
To help with my understanding I would like to respectfully request some questions for an expert to examine, maybe this would apply under the FOIA.
Manufacturing and issuing bank notes
1.) How much does the polymer note cost to manufacture per individual piece, e.g. does it cost more with higher denominations because they are slightly bigger in size etc.? Example; Series G £5, and Series F £10.
2.) I am right in understanding that BOE issues how many notes can circulate and employs De Le Rue to physically print the notes, but does De Le Rue physically distribute them to the seven member banks licenced who then puts them into circulation through lending.
Borrowing and the OMO
3.) And Am I right in understanding that BOE sells its notes to HM Government and individual borrowers. If so how much for. Example; if selling to HM Government, does the central bank borrow the notes in return for fixed-term treasury bonds and securities?
4.) Does the Bank of England have "first dibs" on all the newly offered treasury bonds and securities through the open market organisation?
Yours sincerely,
MATTHEW
Dear Matthew
We acknowledge receipt of your email dated 17 May below (our ref: CAS-21501-M3M9J4).
We will reply in due course.
Information Access Team, Communications Directorate
Bank of England | Threadneedle Street | London EC2R 8AH | +44 20 3461 4878
Dear Matthew
Please find attached response to your email dated 17 May below.
Yours sincerely
Information Access Team, Communications Directorate
Bank of England | Threadneedle Street | London EC2R 8AH | +44 20 3461 4878
Dear Madeline Jefferies, Enquiries
Thank you for your response.
My clarification of providing the cost information per specific note in Question 1.
The material manufacturing cost of each individual £10 and £20 piece between the time period of October and December 2018. And the material manufacturing cost of any individual £5 piece between the time period of August and October 2017.
Alternatively can you provide a personally selected batch example from your own records? And why do the print runs vary in length? Is this due to any reason in particular, inflation?
My Clarification of Question 4.
Both, does BOE committee have the opportunity to purchase securities first before anybody else through the open market through the monetisation of debt office?
When you say “invest this money in assets such as” government bonds etc. Does this include treasury securities? or things of this nature?
Does BOE have any dealings with De La Rue whatsoever? Partnership, affiliation? ect.
“We deduct the cost of printing and issuing banknotes from the income on these assets, and return the balance to HM Treasury” So does this mean BOE makes no profit over its cost per £5, £10, £20, £50 note denominations. If so who collects the interest on the borrowed money for the government’s trust fund, the Treasury?
Thanks again for your correspondence.
Yours sincerely,
Matthew
Dear Matthew
We acknowledge receipt of your email dated 4 July below (our ref: CAS-23036-Q0W2Q8).
We will reply in due course.
Information Access Team, Communications Directorate
Bank of England | Threadneedle Street | London EC2R 8AH | +44 20 3461 4878
Dear Matthew
Please find attached a response to your email of 4 July below.
Yours sincerely
Information Access Team, Communications Directorate
Bank of England | Threadneedle Street | London EC2R 8AH | +44 20 3461 4878
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