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*** Edited by Staff to remove YELLING. All capital letters is the internet version of yelling. Please don't do it in titles or posts. ***Riksbank in Sweden decided to replace their 20kr, 50kr and 1000kr and introduce the 200kr the first year. The second year they are replacing the 100kr and 500kr. Production quantities are a secret in Sweden, but after one year they are circulating only 2.672 million pieces of 1000kr banknotes. In 2008 there were 4.55 million households in Sweden. Norges Bank is going the complete opposite by introducing 100kr and 200kr the first year, 50kr and 500kr the second year, and 1000kr in 2019. Current Circulation figures in Norway on per person basis 17: 20 kr coin4.1: 50 kr 4.1: 100 kr 5.7: 200 kr 7.0: 500 kr 3.4: 1,000 kr Current Circulation figures in Sweden on per person basis 5.0 : 20 kr 2.0 : 50 kr 5.7 : 100 kr - old banknotes 2.6 : 200 kr 8.3 : 500 kr - old banknotes 0.28 : 1,000 kr Why would Norges Bank schedule such a small issue three years into the process? Are they just never going to issue this denomination?Quote:
Norges Bank has decided that the new banknote series will be put into circulation in three stages.
The 100-krone and 200-krone notes will be launched first. These two denominations will be put into circulation at the earliest in the second quarter of 2017. The 50-krone and 500-krone notes will follow at the earliest one year later. The 1000-krone note will be issued last and is scheduled to be in circulation by the end of 2019.
This issuance schedule is still highly tentative and delays may occur.
When the new banknote denominations are put into circulation, old-series notes will continue to be valid for a limited period - the new and the old series will circulate in parallel in this period. From the time Norges Bank decides that the old banknote series is to be removed from circulation, these banknotes will remain valid as a payment instrument and will be acceptable as payment for one year. After this period, Norges Bank has an obligation to exchange these invalid banknotes for a minimum of 10 years.
FREQUENTLY ASKED QUESTIONS
Why aren't all five denominations being issued at the same time?
Norges Bank has decided that the new banknote series will be put into circulation in three stages. All the denominations are not being issued at the same time because of limitations on external business partners' transport capacity and internal limitations on staff and storage capacity at Norges Bank.
Why are the banknotes being issued in this order?
The order of issue has been determined based on total circulation. Norges Bank has decided to start by introducing the 100-krone and 200-krone notes together to avoid confusion as the size of new-series and old-series notes is very similar.
Some automated machines rely on size as an element in banknote recognition. The size of a banknote is also an important aid for the blind and visually impaired, although the new banknote series will carry tactile markers specially developed for this user group. As the new 500-krone note will be approximately the same size as the current 200-krone note, it is important that the majority of old-series 200-krone notes have been replaced before the new 500-krone note is issued.
How will the transition from old to new banknotes be made?
When the new 100- and 200-krone notes are put into circulation in 2017, it will still be possible to use old-series notes for a limited period. The new and the old series will circulate in parallel in this period.
From the time Norges Bank decides that an old banknote series is to be removed from circulation, these banknotes will remain valid as a payment instrument and will be acceptable as payment for one year. After this period, Norges Bank has an obligation to exchange these invalid banknotes for a minimum of 10 years. *** Moved by Staff to a more appropriate forum. *** Edited by PacoMartin
09/23/2016 05:46 am
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Valued Member
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411 Posts |
Greek bank deposits went from 238 billion euros in September 2009 to 151 billion euros in June 2012. Since then they have dropped even lower. Much of the billions of euros were sheltered elsewhere in the EU. That kind of movement of capital is largely facilitated with banknotes, as capital controls prevent the easy electronic transfer of that levels of money. In the year 2000 when the Greece Drachma was fixed in value to the Euro, all the Greek drachma banknotes cumulatively were worth 8.9 billion Euros.
Think how much more difficult it would be to transfer that amount of capital with less than 9 billion in banknotes.In addition the largest banknote (10,000 drachmas) was worth only €29.35 .
After the 3 week bank shutdown in July 2015 ATM withdrawals were limited to €60 per day and €420 per week. But since ATMs are not stocked with €20 banknotes, that means taking out a €50 every day, and essentially €350 per week if you took the time to stand in line every single day and the ATM didn't run out of cash.
Part of the reason the reduction of circulation levels of the largest banknotes of the Nordic currencies is of interest that they are reasonably close in value to the US$100. The elimination of the 500Euro banknote is only of passing curiosity to most Americans as they are not accustomed to such a large denomination. The presumption is that the ECB will simply print more 200 Euro banknotes. But the techniques by which the Nordic countries are eliminating cash may be copied by other countries.
Although no one is anticipating a crash of the blazing Scandinavian real estate market, the meltdown in Iceland was hard to miss. Prior to the banking disaster in Iceland, they managed to keep cash circulating at 1% of GDP for almost two decades. After the bank crash the people demanded more cash and a new denomination had to be introduced as the 5000ISK was so devalued relative to other currencies.
1,000 SEK = $117 USD Sweden
1,000 NOK = $123 USD Norway
1,000 DKK = $151 USD Denmark
10,000 ISK = $87 USD Iceland
500 EUR = $562 USD
Most Scandinavians are non-plussed by the elimination of cash as they consider cash a dirty awkward archaic way to do transactions. The fairly common practice in many countries of keeping a safe full of cash at home is not popular in Scandinavia. The value of all banknotes in Sweden is presently under US$700 per capita (over 70% in the 500kr banknote), where in contrast in the USA the value of just the $20 banknotes in circulation is well over $500 per capita.
Edited by PacoMartin
09/25/2016 11:46 pm
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Valued Member
United States
411 Posts |
Banknotes and coins per capita at end of 2015 in USD-source Bank for International Settlements
$113 South Africa
$195 India
$282 Brazil
$458 Turkey
$599 Mexico
$800 Russia
$872 Sweden (As of August 2016 under $700)
<-------------------- Norway
$1,460 Korea
$1,583 United Kingdom
$1,641 Canada
$1,708 Saudi Arabia
<-------------------- Denmark
$2,320 Australia
$3,571 Euro area
$4,441 United States
$4,911 Singapore
$6,550 Hong Kong SAR
$6,739 Japan
$9,213 Switzerland
Norway and Denmark are not members of the Bank for International Settlement, so they don't have an official ranking. But I have shown where they would go if they were.
As I said Norway may try and follow Sweden when they issue their new banknotes. In particular the decision to change the 1000NOK banknote last and on 3rd year of changeover, even though it has the lowest circulation of any banknote makes me think they will either do away with it, or only issue token quantities like Sweden.
But Denmark just issued their new banknotes from 2009-2011. So if they were going to use that event to limit cash in circulation, they would have done it already.
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Pillar of the Community
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Neighboring Sweden diminished it's stock of circulating banknotes by -18.2% in value in the first 9 months of this year. In the last two months it actually went up by +0.5% with the new 100kr and 500kr banknotes. During December most governments put more banknotes into circulation for the Holidays. Barring no economic upheavel, I think Sweden will continue to diminish their stock in 2017. I am assuming that Norway will follow Sweden's lead when it begins issuing the new banknotes. Quote:22 January 2016: Norway's largest bank calls for total end to cash Norway's largest bank calls for total end to cash. Citing the "dangers and disadvantages" of cash, DNB Bank has called for it to be completely phased out. ... The Ministry of Finance is opposed to DNB's proposal and the bank official acknowledged that going completely cashless "will likely take some time" but suggested that the process should be started now, for example by discontinuing 1,000 kroner notes.. http://www.thelocal.no/20160122/nor...-end-to-cash The decision to replace the 1000NOK banknote last may imply that the country is open to simply not producing the note. Edited by PacoMartin
12/08/2016 05:40 am
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Valued Member
United States
411 Posts |
http://www.norges-bank.no/pages/681...ics_2016.htmNorges bank just published circulation figures for 2016 on their website. While technically the 1000 kr banknotes in circulation and overall value of banknotes have been reduced since 2007, the change has not been nearly as dramatic as Sweden. Presumably, Norway will follow Sweden's lead and replace only a small fraction of the current banknotes with new ones, and issue very few 1000NOK banknotes. Quote:Norway has already became one of the leading countries to propose using electronic money. Several banks have already refused to accept or offer cash transactions in their branches all over the country. https://cointelegraph.com/news/cash...-scandinavia
Edited by PacoMartin
02/02/2017 10:20 am
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Pillar of the Community
Germany
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Thank you for the link. All five northern European countries with their own currency (Iceland, UK, Norway, Sweden, and Denmark) are seriously considering issuing digital currency from the central bank. But the Norwegian speech is the first where I have seen where they admit that they are entertaining the possibility of eliminating banknotes and coins. Quote:
Norwegian speech
Which brings us to another question: which means of payment should be the statutory form of legal tender in Norway if we introduce electronic central bank money? Should it be banknotes and coins, or Norges Bank's electronic money, or both? Quote:
Swedish speech
If the Riksbank chooses to issue e-krona, it is not to replace cash, but to act as complement to it. "The Riksbank will continue issuing banknotes and coins as long as there is demand for them in society. It is our statutory duty and we will of course continue to live up to it," concluded Ms Skingsley. The clause in the Swedish speech "as long as there is demand for them in society" is interesting. With banknotes rapidly approaching only 1% of GDP , the issuance of an e-krona will probably reduce demand to nearly zero. Iceland had reduced banknotes to about 1% of GDP from roughly 1984 to 2007 when the banking crisis meant that banknotes were circulated well above 2% aided by the creation of a new denomination. But Iceland is different than Sweden in that the currency in Iceland has been devaluing rapidly for decades. 1 SEK =12.01 ISK 1 NOK =12.22 ISK 1 DKK =15.63 ISK In the historical Scandinavian Monetary Union (May 1873 - Aug 1914) all crowns traded at parity. Edited by PacoMartin
05/04/2017 12:45 pm
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Valued Member
United States
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Here is a quick comparison of millions of banknotes between Sweden, Norway, and Denmark in circulation Only new banknotes are counted for Sweden. Keep in mind that Sweden has nearly double the population of Norway and Denmark. Norway and Denmark have a coin for the 20kr denomination, while Sweden maintains a banknote. SEK : Denom : NOK : DKK
52.0 : 20 kr : 88.8 : 127.3
21.0 : 50 kr : 22.3 : 25.1
29.2 : 100 kr : 21.7 : 46.3
36.0 : 200 kr : 29.8 : 31.8
51.2 : 500 kr : 36.9 : 34.6
3.5 : 1000 kr : 17.0 : 34.8
The glaring difference is that Sweden has much less cash in circulation per capita than Norway and Denmark and in particular almost no 1000kr banknotes. Do you think all three countries will introduce digital currency within the next two years? Or do you think Norway and Denmark will wait until their is a reduction in banknotes? Norway may wait until the new banknotes are introduced. There is speculation that Norway may not introduce a new 1000kr banknote. The other possibility is that their will be a backlash from commercial banks which will stop any efforts by the central banks from issuing a digital currency. Any thoughts? Edited by PacoMartin
06/15/2017 10:15 pm
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Pillar of the Community
Germany
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@Paco: How do you interpret the latest numbers from Norges Bank regarding notes and coins in circulation? http://www.norges-bank.no/contentas...ics_2017.htmIf find it interesting that Norges Bank has ordered (produced by Oberthur in France) roughly three times more new 200kr and 100kr notes than are actually in circulation. Do you think Sweden's Riksbank did a similar thing? Edited by redlock
01/26/2018 05:06 am
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https://www.norges-bank.no/en/publi...ess-release/NORGES BANK INTRODUCES NEW 100- AND 200-KRONE BANKNOTES The first two denominations in Norway's new banknote series will be put into circulation 30 May 2017. The 50-krone and 500-krone banknotes will follow one year later at the earliest. The 1000-krone banknote will be issued last. The plan is to issue the 1000-krone banknote in the course of autumn 2019. 15.6 million 1000-krone zero ordered 35.4 million 500-krone zero ordered 29.2 million 200-krone 82.480 million ordered 21.6 million 100-krone 67.200 million ordered 22.4 million 50-krone 51.340 million ordered 124.2 million Total 201.020 million ordered Norges Bank's Printing Works was closed down on 30 June 2007. https://www.norges-bank.no/en/Publi...-production/I can only guess as to the strange total numbers. In the USA production runs are always even multiples of 640,000. For instance the December 2017 run of $100 banknotes was for the total quantities indicated Boston A 60*640,000 New York B 40*640,000 Cleveland D 50*640,000 It looks to be about a ten year supply of 100kr and 200kr banknotes. Presumably this year's order will be for the 50kr and 500kr denominations. Sweden keeps their production statistics a state secret. The Riksbank is circulating about 3.4 million 1000kr banknotes. The total number is ridiculously small and it seems stupid that they didn't just eliminate the denomination. However they may have tens of millions stashed away in case of some kind of emergency (like a solar coronal mass ejection) which would incapacitate the electronic transfer system. Norway publishes their production orders, so it will be interesting to see how many 1000kr banknotes they print. Of course they may product 20 million and take three decades to distribute them. Or they could only produce one million of them. Sweden is currently circulating 64 million 500kr banknotes, and has produced an unknown number. At their peak, Sweden was circulating 120 million 500kr banknotes in 2009. Norway may try to out-do Sweden by only producing 35 million 500kr banknotes (one for one replacement of current circulation) and plan for a future when 200kr will be a large banknote.
Edited by PacoMartin
02/21/2018 01:14 am
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Valued Member
United States
411 Posts |
Well the old banknotes have been invalid for about a week. The bank reported the following quantities in circulation at the end of 2017, but they didn't distinguish between old and new notes. End of 2017 21.6 million 100kr banknotes, 29.2 million 200kr banknotes
The next step will be to replace these two denominations
22.4 million 50kr banknotes and 35.4 million 500kr million
The big question is will they follow Sweden's example and only produce token quantities of the 1000kr banknote in 2019?
While the Euro Zone is €3,328 in banknotes per capita the Northern European currencies are at:
Swedish krona € 480 Per Capita
Norweg. kroner € 874 Per Capita
British Pound € 1,230 Per Capita
Danish krone € 1,539 Per Capita
Iceland krona € 1,579 Per Capita
When the Euro began in 2002, Iceland was close to "cashless" with only about €370 per capita in circulation. With nearly all the banks going bankrupt at once, cash made a strong comeback so that the government is concerned and thinking of invalidating the 10,000 ISK banknote that was introduced on Sep 26, 2013 to supplement the 5,000 ISK banknote.
Edited by PacoMartin
06/10/2018 02:15 am
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United States
411 Posts |
Norway still hasn't published their new numbers yet, but a survey done by a researcher for the Bank for International Settlement looked at the growth in currency in circulation (CIC) compared to GDP growth for 42 countries for the decade 2006-2016.
Only Sweden and Norway dropped their CIC.
Growth in CIC | Country | Growth in GDP
-44% Sweden 22%
-2% Norway* -8%
20% Denmark 8%
27% Japan 9%
59% Canada 36%
76% New Zealand 54%
78% Switzerland 54%
79% Eurozone 7%
81% Australia 63%
84% U.K. -2%
87% U.S. 35%
89% Morocco 53%
110% Thailand 83%
135% South Africa 135%
148% Oman* 46%
170% Brazil 160%
178% Russia* 165%
180% Nigeria 179%
183% Colombia 74%
191% Kazakhstan 65%
198% Israel 79%
208% Kenya 173%
224% Mexico 85%
234% Chile 104%
243% Indonesia 240%
250% South Korea 69%
280% Iraq 140%
287% India 263%
318% Algeria 44%
329% Iceland 18%
350% Pakistan 107%
355% Ukraine -13%
359% Turkey 228%
362% Bolivia 195%
369% Egypt 213%
372% Afghanistan 166%
413% Myanmar 365%
441% Angola 114%
442% Mozambique 33%
522% DR Congo 145%
621% Sudan 167%
904% Argentina 135%
The smaller currencies are often better ranked by comparing the difference between CIC growth and GDP growth.
Edited by PacoMartin
01/27/2019 07:55 am
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The new 1000NOK banknote is released this Saturday.
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United States
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Norway is taking a long time to update their statistics on notes and coins. It was updated in February last year. The website states that "The figures are updated annually in January/February'.
Norway was circulating 35,378,000 five hundred NOK banknotes at the end of 2017 and they ordered 75,610,000 new ones. As each banknote probably circulates for a few years, that is a strong commitment to the denomination that will last for most of a decade,
Norway was circulating 14,013,000 thousand NOK banknotes at the end of 2018 and they haven't ordered any since Norges Bank's Printing Works was closed down on 30 June 2007. So the number in circulation has been dropping for over a decade.
I am curious as to how many they ordered for 2019 Iin the new series. If it is 14 million or less than they don't see much future for the denomination.
The 1000kr banknote worth 1000/2480=403 grams of gold has been part of Denmark, Norway, and Sweden's banknotes since the Scandinavian Monetary Union was dissolved during WWI. Circulation of this denomination has been dropping for years in all three countries and they all seem to be on the verge of ending the denomination in favor of 500kr banknote.
Sweden is circulating 3 million, Norway 14 million, and Denmark is circulating 26 million 1000kr banknotes. Iceland is a different story as they have suffered from severe inflation for most of their history and 10,000ISK~480DKK=734NOK (Iceland kr to Danish kr & Norwegian kr).
Edited by PacoMartin
04/06/2020 01:55 am
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Pillar of the Community
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Quote:
Norway is taking a long time to update their statistics on notes and coins. It was updated in February last year. The website states that "The figures are updated annually in January/February." Actually, Norges Bank did update the notes-and-coins statistics on 14-Jan-2020 -- on their Norwegian language website. They still haven't updated the English version though. https://www.norges-bank.no/contenta...ikk_2019.htmQuote:
I am curious as to how many they ordered for 2019 Iin the new series. If it is 14 million or less than they don't see much future for the denomination. 24.400.000 One Thousand Kroner banknotes were ordered by Norges Bank in 2019. 12.200.000 One Thousand Kroner banknotes are in circulation. Edited by redlock
04/10/2020 09:00 am
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Posted 10/03/2016 03:13 am
