Evaluation of the 2002 Cash Changeover
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EVALUATION OF THE 2002 CASH CHANGEOVER April 2002 EVALUATION OF THE 2002 CASH CHANGEOVER April 2002 © European Central Bank, 2002 Address Kaiserstrasse 29 D-60311 Frankfurt am Main Germany Postal address Postfach 16 03 19 D-60066 Frankfurt am Main Germany Telephone +49 69 1344 0 Internet http://www.ecb.int Fax +49 69 1344 6000 Telex 411 144 ecb d All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. ISBN 92-9181-277-3 CONTENTS EXECUTIVE SUMMARY .........................................................................................................................................7 INTRODUCTION .....................................................................................................................................................10 SECTION 1 – PREPARATIONS FOR THE CASH CHANGEOVER ................................................................11 1. Production of initial supply ........................................................................................................................11 2. Changeover framework ..............................................................................................................................11 2.1 Frontloading and sub-frontloading to certain target groups as from 1 September 2001......................................... 13 2.2 Debiting model ....................................................................................................................................................... 15 2.3 Additional measures to ensure a smooth changeover ............................................................................................. 15 2.4 Coverage of risks.................................................................................................................................................... 16 2.5 Compensation of costs............................................................................................................................................ 16 3. Extension of Article 52 arrangements........................................................................................................18 4. Changeover outside the euro area..............................................................................................................18 4.1 Frontloading arrangements..................................................................................................................................... 18 4.2 Other Eurosystem activities in support of the changeover outside the euro area.................................................... 19 4.3 Strategies of the authorities outside the euro area .................................................................................................. 20 5. Collaboration with third parties ................................................................................................................21 5.1 Testing arrangements.............................................................................................................................................. 21 5.2 Training of professional cash handlers ................................................................................................................... 22 6. Measures to assist the withdrawal process................................................................................................23 6.1 Campaigns to attract the exchange of hoarded coin by the general public ............................................................. 23 6.2 Marking schemes.................................................................................................................................................... 24 7. Measures to combat counterfeiting............................................................................................................24 8. Communication policy ................................................................................................................................25 9. Establishment of a stock management system for the changeover period..............................................26 SECTION 2 – HOW THE CHANGEOVER PROGRESSED...............................................................................27 1. Frontloading of fiduciary currency between September and December 2001.......................................27 2. Monitoring the cash changeover ................................................................................................................31 3. Circulation of the euro cash........................................................................................................................32 4. Withdrawal of the legacy currencies .........................................................................................................34 5. Adaptation of automated teller machines (ATMs) ...................................................................................35 6. Adaptation of the cash-operated industry.................................................................................................36 7. Marking schemes.........................................................................................................................................37 8. Counterfeiting..............................................................................................................................................38 9. Changeover outside the euro area..............................................................................................................39 10.Stocks of euro banknotes and coins during the changeover period ........................................................40 11.Communication policy implementation.....................................................................................................40 ECB • Evaluation of the 2002 cash changeover • April 2002 3 SECTION 3 – PROBLEMS AND LESSONS LEARNED .....................................................................................42 1. Bottlenecks in the process of withdrawal of national banknotes and coins............................................42 2. Adaptation of cash-operated machines......................................................................................................43 3. Inflationary impact of the cash changeover ..............................................................................................43 4. Length of dual circulation period...............................................................................................................44 5. No incidents of professional euro banknote counterfeiting......................................................................44 SECTION 4 – THE ROLE OF CASHCO IN THE CASH CHANGEOVER PROCESS ...................................45 1. Risk Analysis related to the Cash Changeover process............................................................................45 2. Co-ordination of logistics of the changeover.............................................................................................46 3. Communication Policy and Crisis Communication Procedures..............................................................46 4. Cash Changeover outside the euro area....................................................................................................47 5. Monitoring the milestones relating to the cash changeover.....................................................................47 6. Co-operation with Third Parties................................................................................................................48 7. Preparation for the changeover weekend..................................................................................................48 Annexes Annex 1 - Envisaged scenarios of the euro area for the 2002 cash changeover as at 20 December 2001 .......................................................................................................................................... 49 Annex 2 - Guideline of the European Central Bank of 10 January 2001 adopting certain provisions on the 2002 cash changeover (ECB/2001/1) ............................................................................ 58 Annex 3 - Contractual or statutory penalties for putting banknotes or coins into circulation before 1 January 2002.......................................................................................................................... 68 Annex 4 - An easy guide to the changeover............................................................................................... 70 Annex 5 - Guideline of the European Central Bank of 20 July 2000 on the implementation of Article 52 of the statute of the European System of Central Banks and of the European Central Bank after the end of the transitional period (ECB/2000/6)........................................ 72 Annex 6 - Guideline of the European Central Bank of 13 September 2001 adopting certain provisions on the frontloading of euro banknotes outside the euro area (ECB/2001/8).......... 75 Annex 7 - Guideline of the European Central Bank of 25 October 2001 amending guideline ecb/2000/6 of 20 July 2000 on the implementation of article 52 of the statute of the European System of Central Banks and of the European Central Bank after the end of the transitional period (ECB/2001/10) ........................................................................................... 82 Annex 8 - Agreement between the European Police Office – EUROPOL – and the