How Euro Banknotes in Circulation Affect Intra-Eurosystem Balances

Lenka Krsnakova () and Maria Oberleithner ()
Additional contact information
Lenka Krsnakova: Oesterreichische Nationalbank, Financial Statements and Treasury Risk Monitoring Division
Maria Oberleithner: Oesterreichische Nationalbank, Financial Statements and Treasury Risk Monitoring Division

Monetary Policy & the Economy, 2012, issue 1, 70–80

Abstract: The cash changeover to the euro created the need to present banknotes in circulation in an innovative manner to allocate them adequately across the balance sheets of the Eurosystem central banks. The solution adopted was to undertake regular accounting adjustments of the circulating banknotes. This article presents the relationships between the relevant balance sheet items – primarily intra-Eurosystem balances arising from such adjustment and the liability constituted by banknotes in circulation – and provides insights into the origins of this mechanism and its legal basis. The value of euro banknotes in circulation, as now reported by 18 Eurosystem central banks (i.e. including the ECB), has risen consistently over the last ten years and now stands at around EUR 900 billion.

Keywords: banknotes in circulation; adjustment of banknotes in circulation; intra-Eurosystem balances; capital key (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.oenb.at/dam/jcr:4984e786-7bd3-4454-8cf ... us5_tcm16-246791.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:onb:oenbmp:y:2012:i:1:b:5

Ordering information: This journal article can be ordered from
Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria

Access Statistics for this article

Monetary Policy & the Economy is currently edited by Gerhard Fenz and Maria Teresa Valderrama

More articles in Monetary Policy & the Economy from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Rita Glaser-Schwarz ().