- border trade in goods and services large amounts are often paid in cash. the swiss, like the germans, have a preference for cash payments. the demand for euro notes in the uk can largely be explained by tourism. many immigrants from the middle east who live in the uk withdraw large amounts of cash in euro there, which they then spend in the euro area. it ’ s a similar story with switzerland. russia is another important market for euro cash. the euro, like the us dollar, is traditionally used as a stable store of value there. the demand for euro correlates with the euro / dollar exchange rate : the stronger the euro, the greater the demand for it. while particularly in the wake of the financial crisis in 2008 there were stronger outflows of notes going to eastern eu countries, a “ dehoarding ” of stocks has begun. every year net return flows have been noted. the return flows from turkey however result in large part from local tourism. in addition, it is likely that considerable amounts in the pockets of turkish migrant workers end up in their home country, from where they are repatriated via the banking system. in some non - euro area countries, kosovo and montenegro, euro cash is even legal tender and is therefore regularly used in daily transactions. this unilateral “ euroisation ”, which has not been coordinated with the eu, is to all extents and purposes a euro adoption “ through the back door ”. this is not compatible with an orderly institutional approach to europe and the euro. unlike the euro countries or small states such as san marino, these countries make no commitments as a quid pro quo for introducing the euro. i would now like to consider the use of euro banknotes in regions outside europe. above all, the united arab emirates and china are major international transshipment centres for goods. for example, african retailers and consumers make purchases in dubai. they value the euro as a stable, internationally accepted means of payment. transactions are settled in cash, because cash has the advantage of settling the invoice immediately, and no information about the creditworthiness of the contracting party needs to be obtained. around one - third of all return flows of euro banknotes are from asia and the middle east. in north, central and south america, the euro tends to play a minor role ; the us dollar dominates there. demand for euro banknotes is largely linked to how foreign users assess the stability of the euro as a currency against

emmanuel tumusiime - mutebile : increasing information sharing through mous remarks by prof emmanuel tumusiime - mutebile, governor of the bank of uganda, at the uganda law society - financial sector consultative meeting for increasing information sharing through mous ( memorandums of understanding ), kampala, 22 march 2010. * * * distinguished guests, ladies and gentlemen good morning i am greatly honoured to deliver the opening remarks at this consultative meeting. i would like to thank all of you for responding positively to the invitation to this consultative meeting whose main objective is to promote institutional networking and information sharing with strategic partners to improve market efficiency. the presence of the various financial sector experts in this consultative forum is testimony that you are committed to finding durable solutions to the impediments that still exist in the financial markets. more specifically, this meeting is intended to identify the gaps that exist in the current arrangements for cooperation, to explore the scope of services and any other information that stakeholders need to share, and to generate proposals on the best legal frameworks for information sharing. some institutions may already be having adhoc arrangements for information sharing and cooperation but these arrangements may not be optimal and this forum should provide avenues for formalizing and strengthening existing arrangements. at the bank of uganda ( bou ), we consider information sharing as a key ingredient in the process of financial markets development. in this regard, the bou duly supports institutional efforts to formalize information sharing through mous. i am happy to note that at national level, all the financial markets regulators namely, capital markets authority, uganda insurance commission and the bank of uganda have an mou for sharing information on regulatory matters. in the design of the financial markets development plan ( fmdp ), specific initiatives were included on information sharing and networking using a top down approach from regulators to the regulated entities. this will not only ensure integration of service delivery in the financial sector but will also result into a majority of the population accessing financial services and products. the more we increase financial integration, the more we shall reach a greater population and the more we shall promote the development of financial markets. it is important for us to move in this direction in order to adequately to prepare ourselves to participate in the greater regional market and remain competitive. our expectation is that we should see more integration of the financial sector, enhanced networking, stronger linkages, higher level transparency and enhanced cooperation. all this should ultimately result in increased efficiency and reduction in costs of doing business