1. THE FUTURE OF FINANCIAL MARKETS JUNE 30, 2016 ST PETERSBURG Alain GERBIER C ASH CIRCULATION AND NON CASH PAYMENTS STRATEGY T HE B ANQUE DE F RANCE ’ S CASH MANAGEMENT STRATEGY

2. Robustness: genuine banknotes, anytime, anywhere Staying ahead of counterfeiting: the Europa series Strong sorting capacity Business continuity management Efficiency: best service, best cost Internally: The Banque de France is moving forward with its modernization of its cash activities, with several milestones already passed (2015 : new machines, 2016 : new IT, 2016 : one new cash center) Externally, by offering an environment to the cash cycle (recirculation, dematerialisation, conditioning) Analysing, monitoring and forward looking Collecting and analysing data Monitoring the cash cycle Forecast and forward looking 1. The 3 key roles of cash management 2

3. Cash management is only one aspect of a global effort towards increased efficiency Key drivers for the future Play a major role in the cash cycle Industrialize cash processing and modernize processes Leading the cash cycle towards more robustness, resilience and efficiency 2. A specific context for the BDF 3

4. 4 3. The New Cash Centres North Paris

5. 5 4. The New Cash Centres

6. A steady demand for cash (transaction vs hoarding ?) Recent developments 5. Cashless society is probably not for tomorrow 6 Until the onset of new technology? Million of transactions Number of transactions, by cards, checks and ATM withdrawals Number of contactless transactions

7. Neutrality with regard to the different payment instruments. Not favoring one instrument over another Committed to supporting cash as a generally available, easy-to-use, reliable and efficient means of payment for retail transactions It is part of the consumers’ free choice of means of payment 6. Is a cashless society called for? 7