In this episode of the HNB Podcast we discuss the challenges of introducing the euro and find out how banknotes and coins are destroyed and how to recognize counterfeit money. These and many other questions are answered by CNB Vicegovernor Ivana Jakir-Bajo, who is in charge of coordinating and managing CNB Currency Area operations.
Sections:
00:49
Good planning is essential for both. At the Ministry of Finance such planning is necessary for the government to be able meet its obligations as it involves determining revenues and expenditures as well as, if necessary, borrowing requirements. At the CNB, on the other hand, planning involves defining the required quantities of currency in circulation as well as deciding on when to order them, how to deliver them safely and where to store them.
03:53
The introduction of the euro was the largest logistic and operational project in the CNB’s history and the Currency Area was assigned a key role. The goal was simple, but not at all easy – for the exchange of the kuna for the euro to proceed smoothly, safely and without any setbacks.
10:57
Once kuna coins have been withdrawn and authenticated they are sold as scrap metal. Kuna banknotes are processed within banknote processing systems, wherein their authenticity is verified. If authentic, they are automatically destroyed by shredding, with each shredded banknote recorded. Shredded banknotes are disposed of in line with regulations.
13:26
The CNB monitors and estimates Croatia’s needs for euro banknotes and coins on an annual basis. These estimates are informed by data from the previous years and all other available information on foreseeable changes: economic developments or any special events that might influence cash spending.
17:55
Commemorative euro coins are special 2 euro coins that serve to commemorate historical, political, scientific, cultural and sporting events as well as the cultural heritage of Croatia and the European Union. The CNB independently decides on the motifs to be featured on these coins and can issue a maximum of two such coin issues per year.
21:15
Banknote authenticity can be easily verified in three steps: by feeling the banknote, looking at it and tilting it. On authentic banknotes, the embossed parts are perceptible to the touch, especially the markings for the blind on the edges of the banknote. By looking at the light, the watermark, the security thread and the see-through number on the banknotes of the first series are checked. By tilting the banknote you can check the security features such as the colour-changing number in the first series of banknotes or the emerald number in the Europa series.