A Tale of Two Currencies – A Riddle, Wrapped in a Mystery, Inside an Enigma

The European Central Bank has published the production requirements for euro banknotes for 2026, which – at just under 1.95 billion – is nearly half that of 2025 (3.4 billion) and the second lowest figure since the euro was introduced in 2002 (the only year it was lower was in 2004). The value is €56 billion.

The lower production volumes run contrary to growth of cash in circulation – which in 2024 was up by 2.4% to 30.5 billion banknotes, worth €1.6 trillion. The two conflicting figures point to either the increased longevity of euro banknotes or (more likely) that a growing number are being held as a store of value, meaning that they don’t get used for transactions and therefore don’t wear out and need replacement.

The Federal Reserve, meanwhile, has recently updated its annual print volumes and values with confirmation of the total number of notes produced in 2024 – 5.8 billion. Its order for 2025 is in the 4.1 billion to 5.9 billion range, with a value of $83.2 billion to $113 billion.