ARCHIVED - Number of 500 euro banknotes circulating in Spain at lowest level since April 2002

The Bank of Spain stopped distributing 500 euro notes in January 2019

The number of 500 euro notes in circulation reached 19.16 million in September, the lowest figure since April 2002, according to the latest data published by the Bank of Spain, which stopped issuing 500 euro notes in January 2019.

The figures are compiled and published monthly as the numbers of 500 euro notes in circulation are gradually taken out of circulation as they enter the banking system.

The latest figures published relate to the end of September when the value of 500-euro banknotes in circulation was 9,581 million euros, compared to 9,723 million euros the previous month.
500 euro note no longer printed

At one time the 500 euro note was known popularly as “a Bin Laden”, the joke being that everybody knew they were out there, but nobody had ever seen one.

The decision to stop printing this denomination of note was due to the fact that these were the principal currency used on the black market, particularly in relation to property transactions during which it was formerly very common for up to half of the property to be paid “on the black” in cash, and for illicit transactions of any nature.

As part of efforts to clamp down on the black market, the taxation system for applying taxes during property transactions was changed, laws were passed limiting the amount of cash which could be exchanged during any transaction and in May 2016 the governing council of the European Central Bank (ECB) agreed to stop producing 500 euro notes.

The Bank of Spain stopped issuing 500 euro banknotes in January 2019, although these banknotes will continue to be legal tender, so they may continue to circulate and be used as a means of payment and to buy and save, although no further notes are being printed.

Professional sectors, such as banks, money transport companies or offices and currency exchange, among other establishments, may recirculate 500 euro notes. These banknotes will retain their value indefinitely and can be exchanged at the national central banks of the euro area at any time.