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Cash in circulation

February 3, 2021

The value (or number of units) of the banknotes and coins in circulation within an

economy. Cash in circulation is included in the M1 monetary aggregate and com-
prises only the banknotes and coins in circulation outside the Monetary Financial

Institutions (MFI), as stated in the consolidated balance sheet of the MFIs, which
means that the cash issued and held by the MFIs has been subtracted (“cash
reserves”). Cash in circulation does not include the balance of the central bank’s
own banknotes (as they have not been issued).

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