Press release of Banco de Portugal on the Report on Cash Issuance
Banco de Portugal releases today, for the first time, the Report on Cash Issuance.
This report, which will be released on an annual basis, addresses the Bank’s activities related to the issuance of banknotes and coins and the most relevant cash indicators in Portugal.
At the end of 2015, the value of banknotes deposited with Banco de Portugal since the introduction of the euro exceeded by €10 billion the value of banknotes withdrawn.
In 2015 Banco de Portugal produced 81 million €5 banknotes, 29 million €20 banknotes and, under the Eurosystem’s pilot production, 22 million €50 banknotes of the Europa series (the €50 banknote of the Europa series will start circulating on 4 April 2017).
€10.7 billion in banknotes and €41 million in coins were withdrawn from Banco de Portugal. Banknote deposits totalled €12.4 billion and coin deposits amounted to €23 million.
The amount of banknotes withdrawn was virtually unchanged from the previous year, while that of deposits decreased by 7.3%. In the case of coins, both amounts declined (9.6% in terms of withdrawals and 40.9% in terms of deposits). The €20 banknote and the 1 cent coin were, once again, the most requested.
At the end of the year, the total value of banknotes deposited with Banco de Portugal since the introduction of the euro in 2002 exceeded by €10 billion the value of banknotes withdrawn. The cumulative value of deposits in banknotes has exceeded that of withdrawals since 2010 (i.e. the net issuance of banknotes has been negative since 2010). This is due to the amount deposited in the form of banknotes of €50 or more, which more than offsets amounts withdrawn across all denominations.
The negative net issuance of banknotes in Portugal seems to be associated with growth in tourism (banknotes that are brought into the country by tourists are not fully absorbed by demand and part of those banknotes is deposited with the central bank).
Unlike banknotes, net issuance of coins in Portugal is positive and has grown continuously. At the end of 2015, it totalled €517 million.
The share of counterfeit banknotes found in circulation remains negligible. However, it is important to recognise a genuine banknote: a counterfeit banknote cannot be exchanged for a genuine banknote, even if it has been accepted by mistake.
In 2015 Banco de Portugal processed 641 million banknotes and 48 million coins. Approximately 180 million banknotes and 280,000 coins were withdrawn from circulation as they did not meet the necessary quality requirements.
8,588 counterfeit banknotes were withdrawn from circulation in Portugal (55% of €20; 28% of €50) – accounting for 1% of total counterfeit banknotes seized in the euro area – and 3,424 counterfeit coins (72% were €2 coins) – corresponding to 2% of counterfeit coins seized in the euro area.
The Bank exchanged escudo banknotes to the amount of €1.2 million. Escudo banknotes to be withdrawn from circulation totalled €155.8 million.
Escudo banknotes to the amount of €1.2 million (74,694 banknotes) were exchanged at Banco de Portugal’s cash offices. At the end of the year, 19.6 million escudo banknotes remained in the hands of the public, totalling €155.8 million. One-third of the value of banknotes to be withdrawn from circulation corresponded to 5,000 escudo banknotes.
Lisbon, 25 July 2016