Notes and coins

The Norges Bank Act assigns Norges Bank responsibility for issuing notes and coins and promoting an efficient payment system. The responsibility for issuing notes and coins involves ensuring that a sufficient quantity of notes and coins is produced to meet the general public's need for cash and to ensure that this cash is available.

Banks order cash from Norges Bank and deliver surplus cash to Norges Bank. Similarly, the general public orders notes and coins, and turns over surplus cash to banks. Thus Norges Bank supplies banks with cash, and the banks are responsible for supplying cash to the public. The central bank is also responsible for maintaining the quality of notes and coins in circulation by seeing to it that worn and damaged notes and coins are withdrawn from circulation and destroyed.

The central bank is also responsible for ensuring that cash functions efficiently as a means of payment. This means equipping notes and coins with security features that are difficult to copy and that make it easy for the public, both with and without aids, to distinguish between genuine and counterfeit notes and coins. One of Norges Bank's important tasks is therefore to inform the public about the characteristics and special security features of notes and coins.

Of the responsibilities imposed by law, there is one that only Norges Bank can carry out. This is the actual issue of notes and coins, i.e. functioning as debtor for issued notes and coins and deciding on the appurtenant conditions. The other tasks can be performed by others, but Norges Bank must ensure that they are carried out, and that their execution is consistent with the requirements made by the central bank.

 

Published 21 June 2006 14:24
Edited 6 June 2014 14:08