Banknotes in emerging economies: Operational insights for financial inclusion

Despite rapid progress in digital payments globally, cash remains the foundation of financial inclusion across emerging economies. This isn’t due to reluctance to adopt technology — it’s a reflection of the realities many communities face. Cash is still the most reliable, universally accessible, and resilient form of money for populations whose daily lives depend on certainty rather than connectivity.

As we look toward 2026, the operational demands of banknote logistics will remain, especially in note dependent economies such as Myanmar and Ethiopia, where the daily transactions of cash remain at 98% and 95%.

Ensuring that physical currency is available, authentic, and safely distributed is a fundamental part of how economies maintain participation, stability, and public trust, even as digital systems evolve around them.
 

Why cash continues to matter

Across Sub-Saharan Africa, Southeast Asia, Latin America, and South Asia, banknotes remain deeply embedded in everyday transactions. Connectivity gaps, inconsistent electricity, low smartphone usage, and the cost of digital services continue to limit how quickly digital ecosystems can expand. 

Even where mobile payments are growing, they tend to complement, not replace, physical currency.

In times of uncertainty, cash becomes even more essential. Storms take down telecom towers, political disruptions interrupt digital services, and infrastructure failures can halt online payments for days. 

When this happens, physical banknotes remain the only functioning medium of exchange. Access to cash, therefore, is still a stabiliser for both households and national systems.
 

Operational realities of distributing banknotes

Ensuring banknotes reach the people who need them is a multi-layered operational exercise involving central banks, commercial banks, cash centres, currency printers, and secure logistics providers. This is especially challenging in countries where geography and risk conditions vary dramatically from one region to the next.

Remote areas often require detailed planning due to unreliable roads, seasonal weather patterns, or transport that is limited to certain windows of the year. In some regions, monsoon seasons can interrupt movement entirely, making advance forecasting essential to prevent local liquidity shortages.

Security conditions add another layer of complexity. Where threats such as theft, unrest, or targeted attacks are more prevalent, operators rely heavily on accurate risk assessments, thoroughly vetted partners, and clear, scenario-tested procedures. Banknote distribution in these environments becomes as much an intelligence operation as a logistics one.

Seasonal fluctuations further increase operational pressure, with harvest cycles, national holidays, election periods, and large-scale welfare payments all driving sharp increases in cash demand. Meeting these peaks requires a distribution model capable of rapid adjustment while maintaining strict control and documentation.
 

Security and infrastructure constraints

The infrastructure surrounding cash distribution varies significantly across emerging economies. ATMs may be few, located far from rural communities, or frequently offline due to power outages. Vaulting facilities and secure transport fleets can differ widely in quality and compliance maturity.

Documentation processes may be inconsistent across regions, and local secure logistics providers can operate under very different governance expectations.

This variation requires financial institutions to maintain constant oversight while adapting to local limitations, a balancing act that demands disciplined planning and careful partner selection.

 

Specialist logistics capability and supporting inclusion

Effective cash distribution depends on the ability to anticipate risks, navigate complex environments, and ensure complete visibility over the movement of currency. This is where experienced secure logistics providers play an essential role in strengthening national frameworks. 

Ava’s work in high-value logistics is built around practices that are particularly important in emerging markets. Because we operate without fixed transport assets, we can select the safest and most capable local partners for each movement, adapting to regional conditions rather than being limited by a single network. 

Those partners are chosen and overseen through physical audits, country-level risk assessments, and ongoing governance, an approach that helps maintain consistent standards even where infrastructure varies widely.

This framework is supported by our dedicated in-house Risk Management Team, who oversee partner performance, conduct investigations, and ensure operations align with agreed SOPs. 

Together, these structures provide the flexibility required to operate in regions with uneven infrastructure while maintaining the level of control necessary for banknote movements. The focus on documentation, verified handovers, and risk-led routing helps ensure that cash reaches the communities who rely on it, even when conditions shift quickly or unpredictably.
 

Working with governments and central banks

National authorities set policy around currency issuance and circulation, but executing these policies at scale depends on cooperation with secure logistics partners. Whether it’s cross-border transfers, repatriation, ATM replenishment, or the redistribution of banknotes across regions with differing liquidity needs, coordination is essential.

Such partnerships become particularly important during high-demand moments — elections, holiday periods, disaster recovery, or emergency disbursement programmes. In these scenarios, the role of secure logistics is not merely operational; it supports continuity, public confidence, and the functioning of essential markets.
 

Looking ahead to 2026

As emerging economies continue to build out their financial ecosystems, cash will remain a stabilising force. Digital channels will expand, but physical currency will carry much of the responsibility for resilience, accessibility, and inclusion. Climate events, political changes, and demographic growth will all put additional pressure on distribution networks — making risk-led, locally informed logistics increasingly important.

Ultimately, financial inclusion depends on more than access to digital tools. It relies on people being able to transact, save, and participate regardless of circumstance. In many regions, that begins with something far more fundamental: ensuring that cash gets to where it is needed, safely and consistently, every time.

To learn how Ava supports central banks, governments, and financial institutions with secure banknote logistics, get in touch with us today. Our teams operate across six continents and are ready to help.