Austria’s Experience with Euro Migration since the Cash Changeover

The introduction of the euro in 2002 offered a unique opportunity to learn more about the patterns and structures of cross-border cash movements. The Oesterreichische Nationalbank (OeNB) has carried out various surveys to analyze the migration of cash in greater depth. This article presents the results of two surveys, which demonstrate that cash is very mobile. An Austrian wallet will typically hold coins and banknotes from almost all euro area countries. Euro coins minted in countries other than Austria are readily discernible, as all coins have a common European face and a distinct national face. For euro banknotes, closer inspection is required, as only the letter contained in the banknote’s number betrays the country of origin. Surveys on cash migration show that the volume of euro banknotes and coins in circulation in Austria, as well as the mix of denominations, remained relatively stable at Austrian households from 2002 to 2004, albeit with a slight increase in the share of foreign banknotes and coins. In Austria, migration continues to generate an influx of banknotes. In particular, EUR 50, EUR 20 and EUR 5 banknotes exhibit a high degree of migration. The results of the two OeNB surveys clearly reveal that banknote migration took place at a considerably faster pace than coin migration. This brief study calculates migration factors for individual countries in order to explain the migration taking place. These factors throw light on whether a country is one of cash emigration or one of cash immigration, while falling short of offering a clear explanation for the underlying reasons of migration.