Euro demand up, says Banque de France

According to data from the Banque de France, euroThe name of the European single currency adopted by the European Council at the meeting held in Madrid on 15-16 December 1995. See ECU. More currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More demand is experiencing an upward trend. In 2017, note printing in France increased by 7.6% compared to 2016 while demand for the euro across the globe is up 4% from the previous year; the same goes for euro coins.

This could seem like a paradox considering the significant growth of alternative paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More methods in across the board, and in France in particular where cards are by far the most popular tool to settle a bill (67% growth in the past 10 years). Contactless payments are also gaining ground in France, particularly for proximity and low-value purchases.

The consistent growth in demand for the euro can be explained by cash’s comparatively more versatile role (means of exchangeThe Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More and store of valueOne of the functions of money or more generally of any asset that can be saved and exchanged at a later time without loss of its purchasing power. See also Precautionary Holdings. More) as well as for the common currency’s international appeal and general stability.

Store of value plays an important role in the equation. According to a study carried out in 2016 by the ECB “The use of cash by households in the euro area”, one out of four Europeans has some euros stashed away at home. Unfortunately, the volume of euros in circulation in France alone cannot be established because of the free circulation of currency within the Eurozone.

The French have a clear preference for smaller denominationEach individual value in a series of banknotes or coins. More notes, according to the central bank, amounting to an average of 24.7 per withdrawal, which is less the than the Eurozone average of 31.6. Data from French commercial banks shows that ATMs are largely fed 20 euro notes (39%), followed by 10 euro notes (36%) while the 50 euro only represents 24%. The 5 and the 100 euro notes are the least popular and are very rarely available for withdrawal at a cashMoney in physical form such as banknotes and coins. More machine.

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