Issue of Banknotes and Coins and Their Structure

By 1 January 1996 there were 4,337.14 million kroons in circulation, of which 532.52 million kroons (12.3%) were with the commercial banks and 3,804.63 million kroons (87.7%) were in circulation outside banks (see Table 34. Cash issued into circulation by Eesti Pank since the monetary reform).

Table 34. Cash issued into circulation by Eesti Pank since the monetary reform (EEK mn)

Since the
monetary
reform,
as of

Notes and coins issued into circulation

Monthly

Increasingly

Total

Of which

With
commercial
banks

In
circulation

01.07.92

x

365.90

107.97

257.93

01.01.93

x

1,228.61

151.41

1,077.20

01.01.94

x

2,730.19

349.83

2,380.36

01.01.95

239.99

3,512.34

440.41

3,071.93

01.02.95

-153.08

3,359.27

464.40

2,894.87

01.03.95

56.39

3,415.66

448.61

2,967.05

01.04.95

-49.40

3,366.26

402.58

2,963.68

01.05.95

119.76

3,486.02

385.99

3,100.03

01.06.95

157.39

3,643.41

482.35

3,161.06

01.07.95

227.29

3,870.70

388.01

3,482.69

01.08.95

116.77

3,987.47

534.31

3,453.16

01.09.95

-37.39

3,950.08

480.41

3,469.67

01.10.95

69.67

4,019.75

444.37

3,575.38

01.11.95

38.48

4,058.22

547.75

3,510.47

01.12.95

-39.41

4,018.81

483.85

3,534.96

01.01.96

318.33

4,337.15

532.52

3,804.63

In 1995 an additional amount of 824.79 million kroons were issued into circulation, increasing the amount of 1-, 50- and 500-kroon banknotes and decreasing that of other denominations (see Table 35. Cash taken from the immediate reserve held with the Eesti Pank vault and additionally issued into circulation in 1993, 1994 and 1995).

Table 35. Cash taken from the immediate reserve held with the Eesti Pank vault and additionally issued into circulation in 1993, 1994 and 1995

Denomination

Additionally
into circulation
in 1995 (balance,
EEK mn)

Structure, % of total

Issued

Received

1993

1994

1995

1993

1994

1995

I. Banknotes total

813.82

99.46

99.54

99.69

99.93

99.96

99.99

o/w 1 kroon

1.16

0.18

0.13

0.16

1.21

0.20

0.17

   2 kroons

-0,72*

0.42

0.23

0.19

1.94

0.34

0.26

   5 kroons

-1.80

2.51

1.49

1.19

11.22

2.45

1.57

   10 kroons

-20.81

7.23

5.53

3.10

24.49

8.83

4.60

   25 kroons

-48.01

11.72

11.21

7.14

25.24

19.18

10.61

   50 kroons

6.82

 

4.27

6.55

 

0.74

8.09

   100 kroons

-88.83

47.43

47.78

42.75

29.79

55.24

57.08

   500 kroons

965.29

29.97

28.90

38.61

6.04

12.98

17.61

II. Coins total

11.69

0.54

0.46

0.31

0.07

0.04

0.01

o/w 5 sents

0.14

x

x

x

 

x

x

   10 sents

0.68

x

x

x

x

x

x

   20 sents

1.18

x

x

x

x

x

x

   50 sents

1.14

x

x

x

x

x

x

   1 kroon

7.97

x

x

x

x

x

x

   5 kroons

0.57

x

x

x

x

x

x

   silver coins

0.01

x

x

x

x

x

x

Total (I+II)

825.51

100.00

100.00

100.00

100.00

100.00

100.00

* A minus shows a decrease of banknotes in circulation, i.e. more were withdrawn from circulation than additionally issued there.

Table 36 (Total amount of cash issued into circulation since the monetary reform) shows the changes in the total amount of banknotes and coins issued since the monetary reform. After 1993 the cash issue has slowed down: 862.7 million kroons were issued between 20 June and 31 December 1992; an additional 1,501.58 million kroons were issued in 1993 and an additional 782.15 million kroons in 1994.

Table 36. Total amount of cash issued into circulation since the monetary reform (thousand pieces)

 

Banknotes

Coins

21.06.92

54,198

92,729

01.01.94

62,905

89,702

01.01.95

58,596

118,979

01.01.96

56,210

144,968

Comparing the structure of banknotes in circulation as of 1 January 1995 and 1996 (see Table 37. Banknotes issued into circulation since the monetary reform), it can be seen that the biggest changes have taken place regarding the 10-, 25- and 500-kroon banknotes. Most of the banknotes in circulation are still of 100-kroon denomination. The average value of one banknote in circulation was 59.39 kroons on 1 January 1995 and 76.30 kroons on 1 January 1996. In 1995 the demand for 100-, 25- and 10-kroon banknotes increased the most. As shown by the given data, the structure of currency in circulation has stabilised.

Table 37. Banknotes issued into circulation since the monetary reform

Denomination

Share (%)

By sum as of

By pieces as of

21.06.92

01.01.94

01.01.95

01.01.96

21.06.92

01.01.94

01.01.95

01.01.96

Banknotes total

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

o/w 1 kroon

2.77

0.34

0.24

0.22

29.52

14.48

14.46

17.13

   2 kroons

2.84

0.45

0.33

0.25

15.13

9.57

9.69

9.46

   5 kroons

10.93

1.59

0.95

0.73

23.25

13.70

11.28

11.11

   10 kroons

15.85

4.64

2.72

1.72

16.86

19.98

16.13

13.11

   25 kroons

29.83

10.47

5.51

3.34

12.69

18.03

13.06

10.20

   50 kroons

x

x

3.25

2.79

x

x

3.86

4.27

   100 kroons

20.43

49.77

44.65

34.12

2.17

21.42

26.49

26.04

   500 kroons

17.35

32.74

42.35

56.83

0.38

2.82

5.03

8.67

The main coins in circulation are of 5- and 10-sent denomination. The demand for 1-kroon coins has increased and that for 5-kroon coins has stayed at a low level (see Table 38. Coins issued into circulation since the monetary reform). The Board of Eesti Pank has decided to cease the issue of 5-sent coins from 1997, but not to withdraw them from circulation.

Table 38. Coins issued into circulation since the monetary reform

Denomination

Share (%)

By sum as of

By pieces as of

21.06.92

01.01.94

01.01.95

01.01.96

21.06.92

01.01.94

01.01.95

01.01.96

Coins total

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

o/w 5 sents

7.30

5.90

5.20

4.20

27.00

30.20

31.20

27.55

   10 sents

16.50

13.00

9.60

8.67

30.30

33.30

28.90

28.44

   20 sents

26.60

16.20

14.30

13.25

24.50

20.80

21.50

21.73

   50 sents

49.60

21.00

14.60

13.37

18.20

10.80

8.80

8.77

   1 kroon

x

15.50

27.60

37.58

x

4.00

8.30

12.33

   5 kroons (Republic of
    Estonia - 75 years)

x

18.20

16.30

13.25

x

0.90

1.00

0.87

   5 kroons (Eesti
   Pank - 75 years)

x

x

5.80

4.65

x

x

0.30

0.30

   silver coins

x

10.20

6.60

5.03

x

0.00

0.00

0.01

Cash Movement

In 1995 a total of 3,889.74 million kroons was issued by Eesti Pank to commercial banks. This is 1.35 times the amount issued in 1994. At the same time, Eesti Pank received cash to the amount of 3,079.5 million kroons, i.e. 1.36 times more than in 1994 (see Table 39. Cash circulation between Eesti Pank and commercial banks in 1995).

Table 39. Cash circulation between Eesti Pank and commercial banks in 1995 (EEK mn)

Period

Turnover between Eesti Pank and
commercial banks

Issued from
Eesti Pank

Received by
Eesti Pank

Balance

Total 1993

2,266.46

1,010.84

1,255.62

Total 1994

2,891.04

2,257.16

633.88

Total 1995

3,889.74

3,079.50

810.24

o/w January

201.90

356.30

-154.40

   February

257.50

203.00

54.50

   March

263.90

314.50

-50.60

   April

321.80

203.30

118.50

   May

363.50

207.70

155.80

   June

435.20

210.70

224.50

   July

354.60

239.50

115.10

   August

270.00

308.30

-38.30

   September

327.10

258.30

68.80

   October

316.00

278.50

37.50

   November

284.90

324.30

-39.40

   December

493.50

175.10

318.40

The structure of banknotes issued from and received by Eesti Pank changed by a mere 1-5% in 1995. However, the velocity of circulation of cash increased.

Compared to 1994, the cash turnover increased considerably in 1995. The banks paid out and received 1.3 times more cash than a year before.

Withdrawal of Worn-out Banknotes

By 1 January 1996 25 million worn-out banknotes received by Eesti Pank had been withdrawn from circulation, totalling 401.5 million kroons (see Table 40. Worn-out banknotes withdrawn from circulation as of 1 January 1996). Of these 80% or 320.88 million kroons were withdrawn in 1995. Table 40 also shows the structure and share of banknotes withdrawn from circulation. After 3.5 years in circulation, the most worn-out were 1- and 2-kroon banknotes. The destruction of withdrawn banknotes began in June 1995 and by the end of the year a total amount of 242.38 million kroons had been destroyed.

Table 40. Worn-out banknotes withdrawn from circulation as of 1 January 1996

Denomination

Sum
(EEK mn)

Worn-out banknotes withdrawn
from circulation

Share of the total
amount of the same
denomination banknotes
in circulation (%)

Amount

Million
pieces

Share
(%)

1 kroon

9.25

9.25

36.98

49.65

2 kroons

15.43

7.72

30.86

63.66

5 kroons

7.15

1.43

5.72

20.01

10 kroons

20.95

2.09

8.36

22.35

25 kroons

47.04

1.88

7.52

24.97

50 kroons

12.88

0.26

1.04

10.70

100 kroons

225.02

2.25

9.00

13.94

500 kroons

63.78

0.13

0.52

2.61

Total

401.50

25.01

100.00

x

Activities of the Money Laboratory

In 1995 the Eesti Pank Money Laboratory carried out 147 examinations on 3332 damaged banknotes which were then withdrawn from circulation. Nine examinations were conducted in order to check the quality of 2190 coins and proof coins.

In 1995 the Laboratory conducted 68 examinations on forged banknotes. At the request of commercial banks, 673 expert opinions were issued on foreign currency banknotes of which 301 were counterfeit and had not been printed by official printers. The public was informed about the appearance of forged notes in circulation.