In a recent annual report, the Central Bank of Cyprus shed light on the prevalence of counterfeit bills and coins circulating in the country. The report, according to an article on Philenews, highlighted the €10 banknote as the most counterfeited bill, making up 40.8 percent of the total counterfeit pieces.
According to the report, a total of 451 counterfeit euro banknotes of various denominations were discovered in circulation in 2022, a significant increase from the 211 detected in 2021. Credit institution cashiers were instrumental in identifying and withdrawing these counterfeit banknotes from circulation. It is worth noting that Cyprus has one of the lowest rates of counterfeit euro banknotes among the countries in the euro area.
Turning attention to counterfeit coins, the report disclosed that a small number of counterfeit coins, specifically 91 coins, were detected throughout the year, all of which were valued at €2. In 2022, the Central Bank processed approximately 135.3 million euro banknotes, subjecting them to thorough examination for authenticity and fitness for recirculation. Out of these, 29.6 million pieces (21.9%) were deemed unsuitable for reissue.
To ensure compliance with the 2014 directive on authenticity and fitness checks of euro banknotes and their recirculation, the Central Bank conducted regular inspections on banknote processing machines and carried out on-site checks at licensed credit institutions throughout 2022, covering all provinces.
The Central Bank completed the replacement of its banknote processing machines with new ones procured through an international tender from EPCO during the same year.
Additionally, approximately 6.7 million euro coins were processed in 2022, with 0.14% (9,231 coins) deemed unfit for recirculation. The report highlighted that the Central Bank also conducted several on-site inspections at credit institutions to verify compliance with Regulation (EU) 1210/2010, which focuses on authentication and the management of unfit euro coins. These inspections were limited in the preceding two years due to Covid-19 pandemic restrictions.
The issuance of currency, including banknotes and coins, falls under the responsibility of the Central Bank. Banknote issuance is handled by the Central Bank, which prints the allocated amount of banknotes following distribution by the European Central Bank (ECB) to each central bank in the Eurosystem. The Government is responsible for coin issuance but has designated the Central Bank as its representative for all matters concerning euro coin issuance since 2016. Consequently, the Central Bank handles the production, minting, withdrawal, and destruction of banknotes and coins unfit for recirculation. The total value of euro banknotes issued by the Eurosystem as of December 31, 2022, reached €1.572 billion, reflecting an annual increase of 1.8%.
