New currency recirculation guidelines implemented by the Federal Reserve System (Fed) of the United States are intended to reduce the overuse of its currency processing services by depository institutions (banks). These changes are expected to have a significant impact on operating policies at...

This paper provides a simple, quantitative, net worth-based, approach to assessing the need for central bank capital. It derives a concept of core capital (a function of the central bank`s operating expenditures and the carrying cost of its international reserves) as the minimum capital needed...