Brussels, 10/05/2016 (Agence Europe) - On Wednesday 4 May, the ECB decided to cease the production of €500 notes, which are suspected of helping to finance illegal activities, such as terrorism.
“The issuance of the €500 note will be stopped around the end of 2018, when the €100 and €200 banknotes of the Europa series are planned to be introduced. The other denominations - from €5 to €200 - will remain in place”, the European institution announced in a press release.
The €500 notes already in circulation will keep their value and may therefore continue to be used to as a means of payment and store of value. According to the ECB, in March 2016 they will represent over 3% of the number of banknotes in circulation, but slightly below 30% of the total monetary value, which is in the region of €300 billion. To offset the reduction in the monetary value circulating in banknote form after 2018, the ECB will ensure that the other denominations are available in sufficient quantities.
This measure affecting €500 notes was suggested when the European action plan to fight the financing of terrorism was presented in February. It was welcomed by countries such as France, but much less so with Germany (see EUROPE 11489). (Original version in French by Mathieu Bion)