Despite extensive knowledge of invalid banknotes: Danmarks Nationalbank expects DKK 3 billion not to be redeemed

Nine out of 10 citizens in Denmark are aware that the 1000-krone banknote and old banknotes from previous banknote series will become invalid. Nevertheless, Danmarks Nationalbank expects that approx. DKK 3 billion will not be redeemed. It is particularly old banknotes that are expected not to be returned.

Recalling Danish banknotes

The older banknotes and the 1000-krone banknote will be legal tender up to and including 31 May 2025. Thereafter, the banknotes can be redeemed at Danmarks Nationalbank's three exchange points until 31 May 2026.

94 per cent of the total value of older banknotes handed in is DKK 500 and 1000 from the 1997 series

DKK million	Submitted to Nationalbanken	In circulation today
1944 Series	0.0*	14.8
1952 Series	0.3*	98.1
1972 Series	14.9	882.5
1997 Series	684.3	1,701.8
of which 1000-krone banknotes	566.6	635.1
of which 500-krone banknotes	90.7	408.7
Total value of older banknotes	699.5*	2,697.3

Note:

The table shows the value of all older banknotes redeemed at Danmarks Nationalbank from 30 November 2023 - 31 January 2025 as well as the remaining quantity, which has still not been submitted to Danmarks Nationalbank on 31 January 2025. Amounts indicated with an asterisk have been adjusted for Danmarks Nationalbank's extraordinary write-down of cash in circulation in December 2023. It included 5-krone banknotes from 1945 (1944 series) for a total of DKK 1.6 million, 10-krone banknotes from 1945-47 (1944 series) for a total of DKK 3.9 million, and 10-krone banknotes from 1952 (1952 series) for a total of DKK 1.1 million. The banknotes were valid against Danmarks Nationalbank ceased in 1954 and 1955, but there was a practice of continuing to exchange the banknotes. However, in line with the launch of the strategic initiatives on 30 November 2023, this practice was discontinued, and the above notes were written off Danmarks Nationalbank's balance sheet.

Source:

Danmarks Nationalbank.

Box 1

How have banknote series been exchanged in Denmark in the past?

Since immediately after World War II, Danmarks Nationalbank has previously not demonetized banknotes series. At that point the 1944 series replaced and invalidated all previously issued series of banknotes. Since the changeover in 1945, Danmarks Nationalbank has issued four new banknote series (the 1952, 1972, 1997 and 2009 series), which have continuously phased out previous series.

When new banknote series have been introduced over the years, banknotes from previous series have been sorted out when they have been used in shops or deposited in banks. In this way, they have been continuously replaced by banknotes from newer banknote series. However, the old banknote series have continued as legal tender in Denmark. Hence, after a new series of banknotes has been introduced, the old notes have rarely been seen in the regular circulation of cash, for example for payments in shops. The remaining number of banknotes from the previous banknote series must therefore be assumed not to be part of the daily household budget, but instead stored separately, e.g. in the form of savings, collector's items, or they may in various ways have been lost over time, as it is a physical product that can be destroyed or lost.

Older banknotes may have a higher value as a collector's item than their face value (depending on both the age and quality of the banknote). There may also be notes that have a higher sentimental value for citizens than their face value, which is why these notes are not handed in or used as a means of payment.

While the transport of Danish banknotes abroad has been significantly reduced today, partly as a result of increased use of digital means of payment, several of the older banknotes were means of payment in a period when the transport of cash values abroad was often done in cash. Thus, several of the banknotes may have been transported abroad, where they may also have been stranded or lost over the years.

Regardless of whether the banknotes have disappeared or are stored as collectibles or something else, they appear on Danmarks Nationalbank's balance sheet.

Significant knowledge of the cash initiatives among citizens

Since the initiatives in the cash area were announced on 30 November 2023, Danmarks Nationalbank has had a strong focus on ensuring that as many people as possible are aware that the various banknotes will become invalid. This is to ensure that people make an active choice about whether they want to hand in the notes before they become invalid or whether they want to keep them.

Throughout the period, Danmarks Nationalbank has focused on raising awareness through its press work. In addition, in September 2024, the bank launched a major information campaign. The main element of the campaign was an information letter to all citizens over the age of 15 via Digital Post. Citizens exempt from digital mail received a physical letter. In addition, the campaign appeared on posters in the cityscape as well as in advertisements and on social media during the autumn.

The combined effort has resulted in more than 9 out of 10 citizens are aware that the 1000-krone banknote will be invalid later this year. This was shown by a survey conducted by Danmarks Nationalbank in October 2024.

In a second survey from December 2024, 8 out of 10 responded that they are aware that all older banknotes will become invalid. 1 in 6 participants in the survey answered that they hold old banknotes. Of these, as many as 9 out of 10 answered that they know that the old banknotes will be invalid.

This means that the vast majority of citizens can make an active choice about whether they want to hand in or keep the banknotes ahead of the deadlines.

Danmarks Nationalbank will launch a new campaign in the spring of 2025 with the aim of further raising awareness and placing particular focus on the date 31 May 2025 as the deadline for the use of the banknotes as a means of payment, as well as the possibility of submitting the banknotes at Danmarks Nationalbank's three exchange points until 31 May 2026.

Approx. DKK 3 billion left after the deadline

Despite the high level of knowledge that a number of banknotes will be invalid, Danmarks Nationalbank expects that there will be a large number of banknotes that will not be handed in before the deadline of 31 May 2026.

This is due to the fact that banknotes are a physical product that can be destroyed or lost - and especially banknotes dating back to World War II, which for many decades has not functioned as an effective means of payment. In addition, there are some who want to keep the notes as collectibles. Finally, it has also been the practice over time that many people used cash when traveling abroad. Some of that cash may therefore be stranded in other countries.

In addition to this, those who had old banknotes were asked if they plan to redeem the banknotes. Half of the respondents said that they want to keep them – even if they become invalid as a means of payment, according to the survey from December 2024.

The old banknotes that have not been handed in correspond to approximately 3 per cent of the total value of the banknotes that have been in circulation in the banknote series when the series was replaced by a new banknote series, see Table 2. Thus, 97 per cent of the total value of the old banknotes has been returned to Danmarks Nationalbank since that date.

In comparison, 13.6 per cent of the most recently called banknote series are still in circulation in Norway, while in Sweden it is 6.4 per cent, see Table 2. In Norway and Sweden, however, the processes for the recall of old banknotes have been different from those in Denmark, as the banknotes have continuously become invalid as a means of payment when new banknote series have been introduced. In addition to this, banknotes can still be redeemed at the central banks in Sweden and Norway. Despite this, the comparison gives a clear indication that the residual amount of 3 per cent outstanding notes in Denmark today is a low level for the older banknotes. Notes that have not been used in shops and banks for several decades.

Table 2

Low level of older banknote series in circulation in Denmark

	In circulation at phase-out (DKK million)	In circulation today (DKK million)	In circulation today (percentage)
Norway: "Series 1994"	36,521	4,978	13.6
Sweden: "Series 2001"	63,859	4,062	6.4

Denmark: 1972 series	33,187	882	2.7
Denmark: 1997 series	55,612	1,702	3.1

Note:

In Norway, the most recent banknote series issued from 1994 – 2001 became invalid as a means of payment in the years 2018 – 2020, while the latest banknote series in Sweden, issued from 2001 – 2006, became invalid in 2016 – 2017. In Denmark, the 1972 series was phased out from 1997, while the 1997 series was phased out from 2009. “In circulation at phase-out” indicates the value of the banknote in circulation at the time when a new series of banknotes was introduced. Data regarding notes in circulation today from Norway and Sweden are from autumn 2024. Danish data is from 31 January 2025.

Source:

Sveriges Riksbank, Norges Bank and Danmarks Nationalbank.

Based on developments in the number of submitted banknotes, the awareness survey and the experience from Norway and Sweden, Danmarks Nationalbank expects that the vast majority of older banknotes that people wish to redeem the notes have already done so. Therefore, the assessment is that more than DKK 2 billion in older banknotes will not be handed in before the deadline.

Conversely, the expectation is that the vast majority of the 1000-krone banknotes from the 2009 series will be handed in ahead of the deadline, as the 1000-krone banknote has a high nominal value and is a newer banknote, which has probably been worn down to a lesser extent over time or is stored as a collector's item.

Danmarks Nationalbank expects that approx. DKK 1 billion of the 1000-krone banknotes from the 2009 series will not be deposited with Danmarks Nationalbank before 31 May 2026. This corresponds to less than 5 per cent of the 1000-krone banknotes that have been in circulation since the 2009 series and is not considered to be significant in comparison with the Nordic countries, among others.

Despite extensive knowledge of invalid banknotes: Danmarks National­bank expects DKK 3 billion not to be redeemed