Opinion of the European Central Bank of 5 May 2014 on certain banknotes and coins ceasing to be legal tender (CON/2014/32)
Date: 2014-05-05
Institutions: European Central Bank
Subjects: Sweden, issuing of currency, money, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 5 May 2014 

on certain banknotes and coins ceasing to be legal tender 

(CON/2014/32) 

Introduction and legal basis 

On 28 March 2014, the European Central Bank (ECB) received a request from Sveriges Riksbank for an 

opinion  on  two  related  draft  legislative  proposals,  including  a  draft  law  on  certain  krona  banknotes 

ceasing to be legal tender and a draft law on certain krona coins ceasing to be legal tender (hereinafter the 

‘draft laws’). 

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/EC1,  as  the  draft  laws  relate  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 laws 

Under the draft laws, the current banknotes of the denominations SEK 20, SEK 50 and SEK 1 000 will 

cease to be legal tender at the end of June 2016, and the current banknotes of the denominations SEK 100 

and  SEK  500  will  cease  to  be  legal  tender  at  the  end  of  June 2017.  In  addition,  it  is  proposed  that  the 

current coins of the denominations SEK 1, SEK 2 and SEK 5 will cease to be legal tender at the end of 

June 2017. 

2.   General observations 

Sveriges Riksbank has been planning the introduction of a new banknote and coin series since 2010. The 

new banknotes and coins will be introduced in two stages. In particular, the ECB understands that the first 

new banknotes in denominations of SEK 20, SEK 50, SEK 200 and SEK 1 000 will be issued in October 

2015, while new banknotes of the denominations SEK 100 and SEK 500 will be issued in October 2016. 

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Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 

 
 
 
 
 
 
 
 
 
                                                      
The  current  krona  banknotes  of  the  same    denominations  will  cease  to  be  legal  tender  nine  months 

following the issue of the new krona banknotes of the corresponding denomination. 

Based on the background information provided to the ECB, the ECB further understands that the short 

period  when  both  current  and  new  krona  banknotes  and  coins  of  the  same  denomination  will  be 

circulated, is justified by the aim of avoiding unnecessary costs for society. Therefore, Sveriges Riksbank 

has sought to minimise the period of dual circulation to the greatest extent possible. 

3.  

Specific observations 

Sveriges Riksbank is the competent authority to issue krona banknotes and coins and to determine their 

design, including their denominations. The ECB welcomes the fact that Sveriges Riksbank has conducted 

an in-depth consultation process with stakeholders in the cash market such as banks, retailers and cash-in-

transit companies, and that it has taken their views into account when determining the length of the nine-

month period, whose expiry marks the end of the legal tender status of the current krona banknotes and 

coins, as mentioned in paragraph 2 above. 

While  considering  this  period  to  be  relatively  short,  the  ECB  acknowledges  its  consequent  benefits  as 

including  a  limitation  on  the  cost  to  stakeholders.  The  ECB  recognises  that  the  length  of  this  period 

reflects  the  preferences  of  such  stakeholders.  Moreover,  according  to  current  legislation,  there  is  no 

specific  final  date  for  redeeming  the  current  krona  banknotes  or  coins  at  Sveriges  Riksbank  once  they 

have ceased to be legal tender. 

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

Done at Frankfurt am Main, 5 May 2014. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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