Issuance of banknotes and coins is one of the core tasks legally imposed on the Bank of Finland. The Bank of Finland is authorised by the European Central Bank (ECB) to put the requisite banknotes and coins into circulation in Finland. By virtue of the Treaty on the Functioning of the European Union, the ECB was granted the exclusive right to authorise the central banks to issue banknotes and the right to approve the amount of coins put into circulation in euro area member states.
The amount of cash issued in Finland since the introduction of the euro has more than tripled, compared with the national currency period, in line with developments in the euro area as a whole. Ease of use, low costs for the user and increased acceptability throughout the euro area have added to the popularity of cash in tourism and in other cross-border payments.
Parties responsible for the currency supply in Finland are:
The Bank of Finland’s regional offices supply banknotes and coins to the private cash distribution centres according to their orders and accept returned banknotes and coins from the centres. The private cash distribution centres, in turn, serve the needs of monetary financial institutions and Automatia Pankkiautomaatit Ltd as well as the banks’ customers. Sorting, quality control and checking for authenticity are undertaken by the Bank of Finland in its two regional offices, in addition to the more than 20 distribution centres around Finland.
In the single euro cash environment, it is natural for euro area countries to seek to harmonise their currency supply systems, where applicable. Coordination and cooperation take place in the area of banknote development, banknote procurement and management of strategic stores of euro banknotes.
Topical issues of currency supply are discussed in the article: ‘The role of the central bank in the cash supply cycle’, Bank of Finland Bulletin 1/2010. Link to the article:
The role of central bank in the cash supply cycle (PDF)