In January, Governor Ida Wolden Bache received a letter from Finance Minister Jens Stoltenberg (Labor). He wanted to remove the thousand kroner and asked Norges Bank to consider it. – It has now been done!
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Norges Bank keeps the 1000-krone note – but stops new orders
Norges Bank allows the 1000-krone note to continue as legal tender, but at the same time puts an end to banks’ ability to order new banknotes. In other words: You can use the banknotes you already have as before – but there will be no more.
Today, Norges Bank has responded to the Ministry of Finance to the letter “New assessment of Norwegian banknote denominations”. The Bank has considered a proposal to remove the largest banknotes, but concludes that this is not appropriate at this time. The assessment is based on a comprehensive review of the role of cash, society’s need for payment contingency, and updated knowledge about how we actually use cash today.
Fewer 1000 notes in circulation – but still valid
At the same time as the banknote is retained, Norges Bank is suspending banks’ ability to order 1000-krone banknotes. This means that the number of banknotes in circulation will gradually decrease as they wear out or are handed in.
“The 1000-krone banknote remains valid as a means of payment, and can be put back into circulation if necessary – for example in a contingency situation,” Norges Bank emphasises. In a serious crisis, it is important to be able to move large amounts of cash quickly.
Cash – an important contingency reserve
Although very few of us use cash on a daily basis, Norges Bank believes that it still has an important role to play in the payment system. Cash is the only means of payment that works if the electronic systems should fail. In addition, cash ensures that everyone has the opportunity to pay – regardless of digital skills.
Norges Bank will regularly assess the denomination composition in line with changes in the payment system and the needs of society.
Norges Bank has posted a Q&A section on its website
What does “stop the banks’ order” of 1000-krone banknotes mean?
From now on, banks can no longer order new 1000-krone banknotes from Norges Bank. The number of banknotes in circulation will therefore gradually decrease as the existing banknotes are handed over or wear out. The 1000-krone banknote is still valid as a means of payment, and can be used in the same way as today. If necessary – for example in a contingency situation – Norges Bank may allow banks to order banknotes again.
Will it still be possible to pay with a 1000-krone banknote?
Yes. The note remains a valid means of payment, and you can pay with it just as before.
Is this the first step towards the end for cash?
No. Cash still plays an important role in the payment system – especially for emergency preparedness and for those who cannot or do not want to use digital solutions.
Does this mean that I have to exchange my 1000-krone notes?
No. The banknotes are still valid and you can use them as before. You don’t have to do anything about them. It is also not possible to exchange today’s valid 1000-krone banknotes at Norges Bank – the bank only exchanges banknotes that are no longer valid.
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