Banknote printing industry has undergone major structural changes in the past decade. This has been explored in this study with special focus to its performance. This study has taken up task of identifying the variables involved in its production cost. It has attempted proposing a production cost function for evaluating its production performance. The variables considered include population of the country, currency in circulation, per capita income, number of denominations produced and circulating in the economy, average number of security features, average size of the banknotes and the method used by the central bank to produce banknotes.
