Eurozone central banks need to improve their understanding of the “cash cycles” of euro banknotes in order to more efficiently manage the process, a paper published by the European Central Bank finds.

More widely, there is a lack of understanding of what influences the quality of eurozone banknotes, say Harald Deinhammer and Anna Ladi in their paper Modelling euro banknote quality in circulation. The paper gathers together research on the numbers of euro banknotes circulating, and on how