The impact of recent shocks on banknote circulation in France

No post 459. Despite rapid growth in digital payments, demand for banknotes remains strong in France and Europe. It is being driven by three factors: transactional use, which is declining, precautionary holdings and demand from outside the euro area. Recent shocks may have altered the respective contributions of these factors to total demand. Examining the velocity of circulation of individual banknote denominations provides insights into these effects.