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500-euro note is only available at German banks until 26 April

2019-04-20T08:15:30.506Z

The 500-euro note is available at German banks only a few days. He should be withdrawn from the market in order to stem criminal transactions. Will the purple note become a collector's item now?



Only until 26 April, the purple-colored 500-euro bill is issued by the Deutsche Bundesbank to customers. Then it's over.

Then the largest Euro bill remains in circulation, but will not be redistributed. The reason is a European-level decision aimed at combating crime.

Three years ago, the Governing Council of the European Central Bank (ECB) decided to cease production and issuance of the € 500 banknote when the new "Europe" series with enhanced security features comes into circulation in May 2019. Advocates expect a renunciation of the 500s, that the financing of terrorist activities and moonlighting is pushed back. Whether that works, is however controversial.

The Bundesbank takes a skeptical view of the end for large banknotes. There is a lack of empirical evidence that measures such as the abolition of high denomination banknotes or the introduction of maximum cash limits can effectively combat tax evasion and other criminal activities, "the central bank's March report said.

According to a Bundesbank model calculation, cash is generally used only to a small extent abusively in the so-called shadow economy. According to the calculations, on average about 14 percent of the cash deposits in Bundesbank branches can be "indirectly attributed to the shadow economy". However, the central bank also points out the difficulties in finding out exact figures.

"No unusual hoarding activities"

There had not been a bigger run on the purple banknote in the last weeks before issue stop. There were "no extraordinary hoarding activities," said Bundesbank Chairman Johannes Beermann. Demand in Germany has been stable since the beginning of the year.

The other 17 national central banks of the Eurosystem had already stopped issuing the 500-euro notes at the end of January. The Austrian National Bank is equal to the German central bank. Both bring net the most 500-euro banknotes in circulation and therefore got more time. The 500s in circulation remain legal tender and are to be exchangeable indefinitely.

Source: spiegel

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