The Bank of Canada distributes new notes if the population demands it. Large population centres get more cash deliveries because there are more people who use it. Smaller communities don't go through cash nearly as quickly as large cities do.
To be clearer: Here is an AI generated logistics of what happens to a Banknote from printing to reaching the hand's of a customer ....
Here is the step-by-step logistics chain for how a newly issued Canadian bank note travels from the printing press to a customer’s hand. This process is well-established and does not require time-sensitive data.
________________________________________
🇨🇦 Lifecycle of a Newly Issued Canadian Bank Note
From CBNC → Bank of Canada → Distribution Network → Bank Branch → Customer
________________________________________
1. Printing at Canadian Bank Note Company (CBNC)
• CBNC manufactures polymer sheets, prints security features, applies holograms, raises ink, etc.
• Notes are cut, quality-checked, counted, and shrink-wrapped into bundles (typically: 1,000 notes per bundle, 10 bundles per brick).
• Each brick is bar-coded and registered to maintain traceability.
________________________________________
2. Secure Transport to the Bank of Canada (BoC) – Currency Operations
• CBNC ships finished notes via armoured transport under strict security.
• Notes do not enter circulation yet—they go to the Bank of Canada’s secured currency facility.
________________________________________
3. Receipt and Verification by the Bank of Canada
At the BoC currency operations centre, the following occur:
1. Authentication of batches against production records
2. Random destructive testing (durability, security feature validation)
3. Inventory entry into the national currency stock
4. Storage in high-security vaults until requested by financial institutions
________________________________________
4. Requests from Financial Institutions (Banks & Credit Unions)
Banks do not print money; they order it from the BoC.
A bank submits:
• Quantity needed (based on projected cash demand)
• Denominations needed
• Delivery location (usually a cash distribution centre)
The BoC approves and schedules deliveries.
________________________________________
5. Armoured-Car Delivery to Bank Cash Distribution Centres
The Bank of Canada releases notes to contracted armoured-car companies.
Notes are delivered to:
• Cash processing centres owned by large banks
• Regional armoured-car vaults that serve many institutions
These centres manage:
• Sorting
• Storing
• Re-bundling for shipments to individual branches or ATMs
________________________________________
6. Sorting, Handling & Deployment to Branches (or ATMs)
Cash centres prepare shipments for each branch based on:
• Typical weekly demand
• Expected seasonal spikes (holidays, paydays)
• Large business customer requests
Bundles/bricks are sealed and logged.
Armoured trucks deliver these sealed packages to bank branches.
________________________________________
7. Bank Branch Receives Cash Shipment
At the branch:
• Deliveries are logged into the branch’s cash inventory system
• Notes are placed directly into vaults or ATM cassettes
• Tellers withdraw bundles to stock their tills as needed
________________________________________
8. Customer Receives the Bank Note
This can happen in two main ways:
A. From a Teller
1. Customer withdraws cash
2. Teller authenticates the notes (visually & by touch)
3. Teller hands the customer newly issued notes
B. From an ATM
1. ATM is loaded with cassettes containing new notes
2. Customer makes withdrawal
3. ATM dispenses notes directly into the customer’s hands
________________________________________
End Result: The Note Enters Active Circulation
The bank note is now part of the circulating currency pool and will:
• Move between consumers, stores, and banks
• Eventually return to a branch or cash centre
• Be checked for fitness
• And ultimately be destroyed by the Bank of Canada when no longer suitable for use
And to go further ....
🇨🇦 Why Eastern Provinces See Fewer Newly Issued Bank Notes
1. Cash demand is much higher in central and western Canada
The Bank of Canada distributes new banknotes according to demand.
Most cash volume moves through:
Ontario (largest population, biggest economy)
Quebec
Alberta & British Columbia (high business cash turnover)
Because these regions withdraw and return much larger quantities of cash, they exhaust their stock of older notes more quickly, prompting:
More frequent shipments
More frequent introduction of new notes
Atlantic provinces have lower total cash demand, so older notes remain in circulation for longer before banks need new stock.
2. Banks prioritize “fit notes” over “brand new notes”
Banks aren’t required to give out fresh-from-the-mint notes.
Their criteria are:
Is the note authentic?
Is it fit for circulation?
Atlantic Canada returns fewer notes overall to cash-processing centres, so:
Notes remain in acceptable condition for longer
There is less need to supply “fresh bricks” of new bills
Cash centres continue recirculating older notes
3. Fewer cash distribution centres in the East
Major cash distribution hubs are concentrated in:
Toronto
Montreal
Vancouver
Calgary
The eastern provinces rely on fewer, smaller vaults.
This creates effects such as:
Larger batch sizes
Less frequent restocking
Longer cycles before inventory turnover
By the time new notes are pushed out from central inventory, most go to regions with faster turnover first. The East receives them last.
4. Less ATM and retail cash turnover
ATMs and retail businesses in Atlantic Canada generally:
Handle smaller volumes
Refill ATMs less frequently
Deposit less worn cash to be destroyed
Circulate notes for longer periods
Because ATMs in the East often use recycled fit notes, they don’t need a fresh supply as often.
5. Geography + logistics = slower cycling of notes
Transport routes from the BoC’s primary cash facilities run:
Central Canada → West
Central Canada → Atlantic
But because the Atlantic region accounts for a small percentage of total Canadian banknote flow, distribution cycles are longer, and it takes time for newly issued series to diffuse across lower-volume routes.
In short:
Eastern provinces don’t see new Canadian banknotes as often because:
✔ Lower cash demand
✔ Fewer notes being withdrawn from circulation
✔ Fewer (and smaller) cash-processing centres
✔ Longer logistical cycles
✔ Strong reliance on recirculated “fit” notes rather than new notes
