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Most Euro Members Close Window on Old Money

Started by Coinsforever, September 12, 2012, 05:07:00 AM

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Most Euro Members Close Window on Old Money

Nine out of 17 euro members' central banks planned to continue exchanging their pre-euro currency for euros indefinitely — anyone who walked in with a pocketful of notes could change them for euros at a fixed rate. Now Spain may set a date when it will close the window on its old currency, the peseta, tilting the balance to a majority of euro members that have finally broken with the past.
So far, just four of the 17 euro members have stopped exchanging pre-euro money: Italy was the first to stop, in December last year, and France, Greece and Finland followed in February and March this year. Other countries planning to stop exchanging old money for the common currency are Cyprus (2017), Malta (2018), Portugal (2022) and The Netherlands (2032).
Spain is set to join them: Prime Minister Mariano Rajoy's Partido Popular is proposing that the peseta's last day as a valid currency should be Dec. 31, 2020, as El Pais reports. The symbolism of this move is probably enlarged by the circumstances under which this is being put forward, as the country wrestles with plans for a European Union bailout.
In practical terms, it will do no more than give a little boost to the books of the central bank. In France, the central bank booked about 550 million euros when it closed the exchange window; that was the amount of currency it calculated was still outstanding, either lost or hoarded away and forgotten. The Greek central bank booked about 200 million euros that were never exchanged and the Finnish bank about 250 million euros.
Spaniards have about 280 million euros stashed away in pesetas, according to the Spanish central bank. If the PP's proposal goes through, they'll have just under eight years to find it and get to the bank. Still, in the mind of Spaniards, the decision may firm up the status of the euro.

Source : bloomberg
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According to this :
They redeem about 1 million euros of pesetas.

Believe it or not, I saw a couple with a big bag full of 10.000 pesetas banknotes (about 60 euros each) a few months ago. I think they redeemed about 12.000 euros in total.  :o

Edit : By the way, the coins shown on the photo can't be redeemed. You can only do that with the ones of the latter years, with another new design :


Would be fine with me. Most countries in this world have redemption deadlines for older money (ie. for notes and coins that are not in circulation any more). And if the Spanish government gives people another eight years, for getting the last pre-euro cash exchanged, that is a fairly big "time window" in my opinion.

From the psychological point of view, things may be a little different. But this approach is still better than what the Italian government did last year, when the redemption period (that was supposed to end in February 2012) suddenly ended in December 2011 ...