Opinion of the European Central Bank of 17 July 2012 on certain old banknotes ceasing to be legal tender (CON/2012/54)
Date: 2012-07-17
Institutions: European Central Bank
Subjects: Sweden, money, national law, payment system

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 17 July 2012 

on certain old banknotes ceasing to be legal tender 

(CON/2012/54) 

Introduction and legal basis 

On  15 June 2012  the  European  Central  Bank  (ECB)  received  a  request  from  Sveriges  Riksbank  for  an 

opinion on a draft law on certain old banknotes ceasing to be legal tender (hereinafter the ‘draft law’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union and the second indent 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 law relates to means of payment. 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. 

1. 

Purpose of the draft law 

Under the draft law, fifty and thousand krona banknotes without foil strips will cease to be legal tender on 

31 December 2013. The reason for the draft law is that there are currently two valid versions of the fifty 

and thousand krona banknotes; the older versions have fewer security features, for example, they have no 

foil  strips.  In  order  to  reduce  the  quantity of  banknotes  in  circulation,  Sveriges  Riksbank  proposes  that 

these  older  banknotes  become  invalid.  So  that  it  can  inform  the  public  accordingly,  Sveriges  Riksbank 

has  proposed  that  it  would  be  preferable  for  the  draft  law  to  enter  into  force  on  1 January  2013.  After 

31 December 2013 it will still be possible for both banks and the public to redeem banknotes by posting 

them to Sveriges Riksbank. 

2.   General Observations 

Pursuant to Chapter 9, Article 14, of the Swedish Constitution, Sveriges Riksbank has the exclusive right 

to issue banknotes and coins. Chapter 5, Article 1, of the Law on Sveriges Riksbank states that banknotes 

and coins issued by Sveriges Riksbank are legal tender. Sveriges Riksbank thus has the sole right to issue 

banknotes and coins and to determine their design. However, general rules concerning the monetary and 

1 

OJ L 189, 3.7.1998, p. 42.  

 
 
 
 
 
                                                      
ECB-PUBLIC 

payment system, such as decisions on certain Swedish banknotes and coins ceasing to be legal tender, are 

decided by Sveriges Riksdag (the Swedish Parliament). 

The  ECB  acknowledges  that  Sveriges  Riksbank  has  conducted  a  thorough  examination  into  the  cash 

markets  need,  taking  into  account  the  views  of  market  participants  such  as  banks,  cash-in-transit 

companies  and  the  retail  sector.  The  ECB  also  considers  that  the  time  interval  between  the  entry  into 

force of the draft law and the date on which the affected banknotes cease to be legal tender is sufficient.  

In  view  of  the  above,  the  ECB  welcomes  the  planned  withdrawal  of  the  old  krona  banknotes  and  their 

replacement  with  new  krona  banknotes  of  the  same  denominations  that  have  more  enhanced  security 

features.  This  replacement  will  ensure  the  integrity  of  the  krona  and  safeguard  it  better  against 

counterfeiting. 

This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 17 July 2012. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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