Farewell to the €500 note
The ECB will stop printing the €500 banknote at the end of 2018 and it will be progressively withdrawn; the move aims to combat financial crime
Those citizens who have never had the chance to get their hands on a €500 note would be advised to hurry if they want the pleasure. At the end of 2018, the European Central Bank (ECB) will cease to print the denomination, although it will remain valid for exchange it will gradually be withdrawn, as was agreed yesterday by bank. However we should stress that the lucky owners of the purple note will be able to exchange it for an unlimited period in any central bank in the eurozone and as well, its value will be maintained indefinitely.
Its high denomination and the generalized use of electronic payments means that the €500 bill is an impractical means of payment that has come to be associated often with illegal activities, money laundering, fraud and financial crime. “The €500 bill is a tool for illegal activities,” Mario Draghi, ECB president said in February, reopening the debate which finally closed with yesterday's decision.
Despite its high value, the note is not a rare sight around Europe. The BCE calculates that 20% of consumers who make purchases between €200 and €1,000 in cash frequently use the note, and with more expensive purchase, over €10,000 for example, purchases sit at 4%. In Spain, that figure reaches 6% of purchases over that amount.
Few banknotes currently in circulation in the world have a higher value. Singapore has a $10,000 note which represents an astounding €6,440 on exchange. The Swiss CHF1,000, at today's exchange rate is €909. On the other extreme, the US Federal Reserve, which coins the US dollar benchmark has never gone beyond printing the $100 note (€86).