For European monetary authorities, it is a premiere: For the first time since the introduction of the common currency 14 years ago, the Euro-keepers now the abolition of euro banknotes decided. “Towards the end of 2018 ‘the 500-euro bill will be history, the Council of the European Central Bank (ECB) announced on Wednesday evening. Central bankers hope to contain better with the abolition of the largest euro note terrorist financing and money laundering. But the decision has been controversial. The “world” answers the most important questions.
How many 500-euro notes there are?
Currently, about 594 million pieces of this are greatest all euro banknotes in circulation. Although this represents only 3.2 percent of all euro banknotes. However, the 500 is good with 297 billion euros for almost 28 percent of the value of all euro banknotes.
As the 500-euro bills are taken out of circulation?
The Governing Council has agreed on the phrase “end of 2018″. So then the 500-euro bill will not be a legal tender more. To get the 500 out of circulation, the tickets must be gradually withdrawn, shredded and replaced by other smaller denomination notes. Their numbers will therefore increase in the future. A instant production stop for the 500 has the ECB for not only cause:. Austria, which is responsible for the provision of the 500ers in the euro system has printed since 2014 none of these bills more
How long can the 500 exchange to?
How many citizens the 500-euro bills may switch on the planned date beyond still lies in the decision of the national central banks. According to current state of the large slip in all euro area countries should in time can be exchanged indefinitely. In the introduction of the euro, the national central banks have handled the issue quite differently. While the Bundesbank converts old D-mark notes still in euros, which is no longer possible, for example in Lira and Francs in Italy and France.
Why the 500-euro bill is abolished?
ECB President Mario Draghi has repeatedly pointed out that the bill will be more used than other denominations for criminal purposes and a “tool for illegal activities” was. Indeed, many citizens have the purple glow never held in their hands, even though he is not the rarest banknotes in the euro system. It raises the question, what these bills would actually actually needed, Europol was in an analysis.
What makes the 500 criminals so attractive?
The larger the value printed on a banknote, the easier can use it on a large scale for such transactions. After all, weighs one million euros in 500 bills about 2.2 kilograms. The same sum in 50 bills bringing it to 22 kilos – and can alone carry significantly less inconspicuous because of the volume. ?
What is the outlook for success
One thing is certain: As before cash is for organized crime is one of the most important tools in order to conceal illegal income and money laundering transactions. Whether criminal activity can be really curbed with the abolition of the largest euro banknote, still is controversial. Especially Bundesbank President Jens Weidmann had recently shown skeptical. But in the Governing Council, a simple majority of such non-monetary decisions.
How the critics argue?
criticism of this decision it hails mainly from Germany. So argued among others, the head of the Munich-based Ifo Institute, Clemens Fuest, an end for the bill undermines confidence in the ECB. If it is really going to the central bank to combat black money, they should postpone a decision on the future of the 500-euro note, until the interest rate situation had normalized. “Because cash has no negative interest rates, but probably electronic accounts.” The abolition of the bill leave the impression that the ECB was preparing a further lowering of the key interest rate below zero. The abolition of the 500-euro note so it is difficult for people to deposit their money off the banks and avoid value loss due to negative interest rates.
Why the goodbye is just the Germans so hard?
Unlike in Germany, the end of the 500-euro note is not a big issue in most European neighbors. That might be because that countries like France or Italy to the euro did not have particularly valuable bills before the changeover. So for example, was the former 500-franc bill – after all, the largest banknote France – worth converted just 76 euros. In Germany, there was the 1000 D-Mark note equivalent to the current 500-euro note, which was first created primarily at the instigation of the Germans at all. With the end of large 500cc appearances so is basically a piece of German monetary history to an end.
What does the conversion?
A good business should say goodbye to the 500-euro bill for ECB not exactly be. Rather, the central bank must simultaneously with the withdrawal compensation in the form of other bills provide, preferably so increase the numbers of the 100 euro note and the 200-Sheet. In addition, the central bank could escape called seignorage profits. This refers to the difference between the face value and the output value of the bill. Should choose to keep their assets rather in other currencies or in gold rather than in the smaller Euro denominations, which should reduce the seignorage profits of the ECB bottom line citizens after the 500ers.
Readers are hidden.
// The following are highly recommended additional parameters. var disqus_identifier = 155057475; // article id where comments used var disqus_url=’http://www.welt.de/wirtschaft/article155057475/Das-sollten-Sie-zum-Ende-des-500-Euro-Scheins-wissen.html’;//article url where comments used function disqusAd (e) {var s2 = document.createElement ( ‘iframe’); s2.src = “http://appc.welt.de/static/welt/2012/pa-anzeigen/anzeige.html”; s2.width = 620; s2.height = 100; s2.style.overflow = ‘hidden’; s2.scrolling = “no”; s2.style.border = “none”; $ (E) .parent () append (s2). s2.scrolling = “no”; } Var dsqcounter = 1; / * * DO NOT EDIT BELOW THIS LINE * * * / $ (document) .ready (function () {(function () {var disqusSsoEnabled = false;! Var experimental mode = $ .cookie ( ‘BIGP_EXPERIMENTAL’); if (experimental mode) {disqusSsoEnabled = true;} if (disqusSsoEnabled) {window.disqusid = $ .cookie ( ‘disqusid’); window.disqus_config = function () {this.sso = {name: “Login” button: “http : //img.welt.de/skins/welt/gfx/disqus_login.png “, url:” https://ssl.welt.de/user-web/disqus/login.jsp “logout:” https: / /ssl.welt.de/user-web/disqus/logout.jsp “width” 500 “height:” 500 “}; if (window.disqusid) {window.disqusid = window.disqusid.replace (new RegExp ( “. “, “g”), ‘=’); window.disqusid = window.disqusid.replace (new RegExp ( “_”, “g”), ”); this.page.remote_auth_s3 = window. disqusid; this.page.api_key = ’8JmKKMV2FgF5OgVCye4P0v3Q9aJK8eQOZ6VtqjfLaMgTzrNy465erNMGjGFhbW2X’; }}; }} ()); (Function () {var = document.createElement dsq ( ‘script’); dsq.type = ‘text / javascript’; dsq.async = true; dsq.src = ‘http: //’ + disqus_shortname + ‘.disqus. com / embed.js’; if ($ .cookie ( ‘ASsocialOptout’)! = ‘true’) {(document.getElementsByTagName ( ‘head’) [0] || document.getElementsByTagName ( ‘body’) [0]) .appendChild (dsq);} else {$ ( ‘.disqus .optoutSocMed’) html (optoutHTML) .show ();.}}) (); var = {wDisqusCfg disqussion: true}; asms.extend (asms.config, “wDisqus” wDisqusCfg); asms.general.ece.widgets.disqus.init (asms.config.wDisqus); }); blog comments powered by
No comments:
Post a Comment