How are banknotes put into circulation by the Bank?

Banknotes are put into circulation when financial institutions withdraw money from their current accounts at the Bank to provide for payment to individuals and firms. This process is referred to as the issuance of banknotes.

Following this process, individuals and firms can obtain banknotes by withdrawing cash from their accounts at financial institutions. Banknotes are then used to purchase goods and services, tax payments, and for many other purposes.