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Hong Kong Monetary Authority (HKMA)

Costly bankrolling of a New Year tradition

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Enoch Yiu

In Hong Kong, a new year usually requires new money.

As the Lunar New Year approaches, the Hong Kong Monetary Authority and the city's note-issuing banks are busy printing about 200 million new bills - mostly HK$20 notes - for a total of more than HK$4 billion in new currency to be used in lai see packets.

Most Hongkongers want newly printed banknotes for their lai see packets, traditionally given to unmarried people as a gift and blessing in the Lunar New Year.

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In recent years the Monetary Authority and banks have been asking customers to accept 'almost new' banknotes instead for environmental reasons. But their advice has not taken hold and new lai see money is still a big production.

It takes roughly 266 tonnes of cotton to make 200 million banknotes, which occupy 333 cubic metres of storage space and could fill 13 20-foot containers, according to the authority. 'The three note-issuing banks need to arrange 500 trips with security escorts to transport these brand-new notes,' a spokesman said.

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In 2006, the authority introduced the so-called 'ying-san note' or 'good-as-new' note, hoping to lower costs and support environmental protection, the spokesman said.

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