Eesti Pank - Bank of Estonia

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).

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).

Table 36 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.

Comparing the structure of banknotes in circulation as of 1 January 1995 and 1996 (see Table 37, Page 52), 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.

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, Page 52). The Board of Eesti Pank has decided to cease the issue of 5-sent coins from 1997, but not to withdraw them from circulation.

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, Page 53).

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By 1 January 1996 25 million worn-out banknotes received by Eesti Pank had been withdrawn from circulation, totalling 401.5 million kroons (see Table 40). Of these 80% or 320.88 million kroons were withdrawn in 1995.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.

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.

Cash