Opinion of the European Central Bank of 17 May 2004 at the request of Sveriges Riksbank on two draft laws on certain old banknotes and coins ceasing to be legal tender (CON/2004/17)
Date: 2004-05-17
Institutions: European Central Bank
Subjects: Sweden, central bank, money, national law

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 17 May 2004  

at the request of Sveriges Riksbank on two draft laws on certain old banknotes and coins  

ceasing to be legal tender 

(CON/2004/17) 

1. 

On 5 April 2004, the European Central Bank (ECB) received a request from Sveriges Riksbank for 

an  opinion  on  a  proposal  from  Sveriges  Riksbank  to  Sveriges  riksdag  (Swedish  Parliament)  to 

adopt two draft laws on certain old banknotes and coins ceasing to be legal tender (hereinafter the 

‘draft laws’).  

2. 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  the  second  and  third  indents  of 

Article 2(1) of Council Decision 98/415/EC of 29 June 1998 on the consultation of the European 
Central Bank by national authorities regarding draft legislative provisions1 as the draft laws contain 

provisions  concerning  means  of  payment  and  the  Swedish  national  central  bank.  In  accordance 

with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the 

Governing Council has adopted this opinion. 

3. 

In  the  explanatory  memorandum  to  the  draft  laws,  Sveriges  Riksbank  proposes  that  certain  old 

banknotes  and  coins  should  cease  to  be  legal  tender  on  31  December  2005.  According  to 

Section 14 of Chapter 9 of regeringsformen (Swedish Constitution Act), Sveriges Riksbank has the 

exclusive  right  to  issue  banknotes  and  coins.  Section  1  of  Chapter  5  of  lagen  (1988:1385)  om 

Sveriges  riksbank  (Sveriges  Riksbank  Act)  states  that  banknotes  and  coins  issued  by  Sveriges 

Riksbank  are  legal  tender.  General  rules  concerning  the  monetary  and  payment  system,  such  as 

decisions  that  certain  Swedish  banknotes  and  coins  should  cease  to  be  legal  tender,  are  however 

laid down by statute enacted by Sveriges riksdag.  

4. 

In  view  of  the  above,  Sveriges  Riksbank  has  prepared  two  draft  laws  for  adoption  by  Sveriges 

riksdag  as  follows:  (i)  Förslag  till  lag  om  vissa  äldre  sedlars  upphörande  som  lagliga 

betalningsmedel (the draft law on certain old banknotes ceasing to be legal tender) (hereinafter the 

‘draft  law  on  old banknotes’);  and  (ii) Förslag  till  lag  om  äldre  femtiöresmynts  upphörande  som 

lagligt betalningsmedel (the draft law on the old 50-öre coin ceasing to be legal tender) (hereinafter 

the  ‘draft  law  on  the  old  50-öre  coin’).  Under  the  draft  law  on  old  banknotes,  old  versions  of 

1  

OJ L 189, 3.7.1998, p. 42. 

 
 
 
                                                 
Swedish banknotes denominated SEK 20, 100 and 500, respectively, shall cease to be legal tender 

on 31 December 2005. Under the draft law on the old 50-öre coin, the old silver-coloured 50-öre 

coin  shall  also  cease  to  be  legal  tender  on  31  December  2005.  It  is  proposed  that  the  draft  laws 

should  enter  into  force  on  1  January  2005,  i.e. one  year  before  the  affected  banknotes  and  coins 

cease to be legal tender. 

5. 

The  explanatory  memorandum  to  the  draft  laws  sets  out,  inter  alia,  the  reasons  why  the  affected 

banknotes  and  coins  can  cease  to  be  legal  tender  despite  relatively  short  notice  being  given.  The 

main  reason  for  this  is  Sveriges  Riksbank’s  generous  practice  of  redeeming  old  banknotes  and 

coins for a considerable period after they cease to be legal tender.  

6. 

The ECB has considered the issue of timing and agrees with Sveriges Riksbank’s assessment that 

the proposed interval between the date when the draft laws enter into force and the date when the 

affected banknotes and coins cease to be legal tender should be sufficient. The ECB has no other 

comments on the draft laws. 

7. 

The  ECB  confirms  that  it  has  no  objection  to  the  competent  national  authorities  making  this 

opinion publicly available at their discretion. This opinion will be published on the ECB’s website 

six months after the date of its adoption. 

Done at Frankfurt am Main, 17 May 2004. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

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