ANNUAL REPORT 2008 - Polymer Bank Notes of the World

Chart 48 Number of euro banknotes in circulation between 2002 and 2008(millions)EUR 500EUR 200EUR 100EUR 50EUR 20EUR 10EUR 51,4001,4005,0005,0001,2001,0008001,2001,0008004,0003,0004,0003,0006004002006004002002,0001,0002,0001,00002002 2003 2004 2005 2006 2007 2008002002 2003 2004 2005 2006 2007 20080Source: ECB.In 2008 the total number of euro coins incirculation (i.e. net circulation excluding stocksheld by the NCBs) grew by 7.9% to 82.3 billion,while their value rose by 5.7% to €20.4 billion.The 1 and 2 cent coins accounted for most ofthis increase. The share of the low-value coins,the 1, 2 and 5 cent coins, in the total number ofcoins in circulation remained stable at 59%.BANKNOTE HANDLING BY THE EUROSYSTEMIn 2008 the euro area NCBs issued 34.1 billionbanknotes, while 33.2 billion banknotes werereturned to them. The return frequency 7 ofbanknotes in circulation remained almostunchanged at 2.79, meaning that, on average,a banknote was checked for authenticity andcirculation fitness by the fully automatedbanknote processing machines of the euro areaNCBs around once every four months.Since 2004 the Eurosystem has conductedannual surveys with the aim of monitoring thecondition of euro banknotes in circulation atthe euro area level. In 2008 a trend towards animprovement in the condition of the banknotesin circulation was observed. The condition ofthe banknotes also became more homogeneouswithin the euro area, reflecting the Eurosystem’scoordinated sorting/issuing policies. The NCBsidentified some 5.6 billion banknotes as unfit forcirculation and replaced them accordingly. Theunfit rate, 8 at around 17.0%, remained close tothe rate recorded in the previous year.3.2 BANKNOTE COUNTERFEITING ANDCOUNTERFEIT DETERRENCECOUNTERFEIT EURO BANKNOTESThe total number of counterfeit euro banknotesreceived by National Analysis Centres 9 in 2008was around 666,000 10 , which represented anincrease from the relatively stable levelsobserved in previous years. However, thenumber of genuine banknotes in circulation alsoincreased significantly in 2008. Compared withthe number of genuine euro banknotes incirculation, which reached 13.1 billion by theend of 2008, the quantity of counterfeits is verysmall indeed. Therefore, the probability ofrandomly receiving a counterfeit banknote fromcirculation remains very low. Chart 49 showsthe trend in counterfeits removed fromcirculation, with figures taken at half-yearly7 Defined as the total number of banknotes returned to NCBs ina given period divided by the average number of banknotes incirculation during that period.8 Defined as the number of banknotes identified as unfit in a givenperiod divided by the total number of banknotes sorted duringthat period.9 Centres established in each EU Member State for the initialanalysis of counterfeit euro banknotes at the national level.10 This figure is subject to a very slight correction on account oflate reports, particularly from outside the EU.ECBAnnual Report2008119