The number of 500 euro notes in circulation in Spain has fallen to 110 million, a third of the total cash in the hands of the public. This figures is a drop to a level not seen since October 2006. According to figures published by the Bank of Spain there are 82,814 million euros in circulation of which 79,477 million are in banknotes and 3,337 million in coins.
In part this fall has been a result of the crackdown by Hacienda (the Spanish tax office) on fraudulent activities using these banknotes. They automatically investigate anyone who has carried out transactions involving more than one thousand 500 euro notes.
The number of banknotes put into circulation depends on the demand by financial institutions who need to supply their customers' demands. Apart form the Bank of Spain there are fifteen other banks which emit money, each one 'specialising' in notes of a particular denomination. The number of banknotes to be emitted each year is decided by the Central European Bank based on the previsions made by the national regulatory organisms.
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