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Foreign demand for euro banknotes

Author

Listed:
  • Lalouette, Laure
  • Zamora-Pérez, Alejandro
  • Rusu, Codruta
  • Bartzsch, Nikolaus
  • Politronacci, Emmanuelle
  • Delmas, Martial
  • Rua, António
  • Brandi, Marco
  • Naksi, Martti

Abstract

In order to understand why there is a continuous increase in euro banknote circulation even though the use of cash for transactions is decreasing in the euro area – a phenomenon known as the paradox of banknotes – the members of the Overseas workstream of the Eurosystem Research Network on Cash (EURECA) have conducted a study on the foreign demand for euro banknotes. The results of this study are based on desk research using data collected in the Eurosystem and from other organisations, and using both proven and innovative techniques. JEL Classification: E41, E47, E49, E59, F24

Suggested Citation

  • Lalouette, Laure & Zamora-Pérez, Alejandro & Rusu, Codruta & Bartzsch, Nikolaus & Politronacci, Emmanuelle & Delmas, Martial & Rua, António & Brandi, Marco & Naksi, Martti, 2021. "Foreign demand for euro banknotes," Occasional Paper Series 253, European Central Bank.
    • Handle: RePEc:ecb:ecbops:2021253
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    Citations

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    Cited by:

    1. Franz Seitz & Lucas Devigne & Raymond de Pastor, 2022. "Different Motives for Holding Cash in France: an Analysis of the Net Cash Issues of the Banque de France," Working papers 888, Banque de France.
    2. Matthias Schroth & Mara Vyborny & Lisa Ziskovsky, 2022. "Should the use of cash be limited?," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/22, pages 109-119.
    3. Luca Baldo & Elisa Bonifacio & Marco Brandi & Michelina Lo Russo & Gianluca Maddaloni & Andrea Nobili & Giorgia Rocco & Gabriele Sene & Massimo Valentini, 2021. "Inside the black box: tools for understanding cash circulation," Mercati, infrastrutture, sistemi di pagamento (Markets, Infrastructures, Payment Systems) 7, Bank of Italy, Directorate General for Markets and Payment System.
    4. Kotkowski, Radoslaw, 2023. "National culture and the demand for physical money during the first year of the COVID-19 pandemic," Finance Research Letters, Elsevier, vol. 51(C).
    5. Eric Magnin & Nikolay Nenovsky, 2024. "Soft monetary constraint and shortage in the European sovereign debt economy," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 37(1), pages 55-80, March.
    6. Brian Micallef & Tiziana Gauci, "undated". "Excess demand for banknotes in Malta," CBM Policy Papers PP/02/2022, Central Bank of Malta.
    7. Ilona Skibińska-Fabrowska & Małgorzata Czuchryta & Adrian Żak, 2023. "The relationship between payment inclusion and the demand for cash," Bank i Kredyt, Narodowy Bank Polski, vol. 54(4), pages 365-388.
    8. Tamele, Barbora & Zamora-Pérez, Alejandro & Litardi, Chiara & Howes, John & Steinmann, Eike & Todt, Daniel, 2021. "Catch me (if you can): assessing the risk of SARS-CoV-2 transmission via euro cash," Occasional Paper Series 259, European Central Bank.
    9. Marc Bittner & Thomas Scheiber, 2022. "The use of euro cash as a store of value in CESEE," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/22, pages 121-143.
    10. Rösl, Gerhard & Seitz, Franz, 2023. "Uncertainty, politics, and crises: The case for cash," IMFS Working Paper Series 186, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    11. Anton Schautzer & Helmut Stix, 2022. "Past and future development of euro cash in Austria – resilience in light of technological change and economic crises," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/22, pages 21-46.

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    More about this item

    Keywords

    banknotes; currency substitution; euro; euroisation; foreign demand for money; hoarding; remittances;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • E49 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Other
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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