The Issue Department of the Bank of Japan published "Circulation Status of New Bank of Japan Notes" as a BOJ Review on July 31, 2025. While the transition to new Bank of Japan notes that began issuance on July 3, 2024, is proceeding steadily, the ratio of new Bank of Japan notes to total banknote issuance outstanding is trending lower than during the 2004 previous redesign.
The background factors for this phenomenon are analyzed as: ① increase in banknote issuance outstanding, ② decrease in banknote receipt and payment volumes, and ③ differences in demand strength for new banknotes reflecting different social conditions. Changes in the cash environment, particularly the advancement of cashless payments, are cited as contributing factors.
The BOJ Review analyzes these factors in detail and compares the current circulation status with the 2004 previous redesign. The Bank of Japan indicates its commitment to continue working comprehensively to ensure smooth circulation of new Bank of Japan notes. This analysis serves as important material for understanding structural changes in cash demand.