Even though Norwegian merchants are once again obligated to accept cash, another krone note is in danger of being pulled off the market. Norway’s state police unit in charge of economic crime, Økokrim, now wants to do away with the NOK 500-note along with the NOK 1,000-note.
Norway’s 500-kroner note may be withdrawn if crime-fighters get their way. ILLUSTRATION: Norges Bank
Just as the krone itself strengthened against both the euro and the US dollar this week, comes news that Økokrim thinks both of Norway’s largest denominations should be scrapped as currency. The finance ministry recently proposed pulling the NOK 1,000-note off the market on the grounds it’s too often used in criminal cash transactions or as a means of evading taxes.
Now criminal investigators think the NOK 500-note (currently worth around USD 52) is just as troublesome. “It’s also a large note, and what we see in the largest seizures made in criminal cases,” Økokrim chief Pål Lønseth told state broadcaster NRK. He would be happy to see both the NOK 1,000-note and the NOK 500-note withdrawn.
Lønseth claimed cash with lower denominations can also be easier to use in cash transactions. Merchants wouldn’t need to have as much cash and coins on hand to make change for customers.
Use of cash in Norway nearly came to a halt during the pandemic, when it was viewed as a possible source of infection. Merchants were allowed to insist on credit card- or electronic payment only, and automated teller machines (called a “minibank” in Norway) often went unstocked.
When the pandemic ended, most all banks resumed or started charging fees to withdraw cash from Norwegian minibanks, even after most all bank branches had shut down. They claimed it had become expensive to handle cash, and fees were recently increased to NOK 40 (nearly USD 4) for each withdrawal regardless of amount.
Merchants, meanwhile, were slow to start accepting cash again but ended up being forced to do so, not least when having and using cash became part of Norway’s national security and preparedness guidelines. All Norwegians are now urged to have cash on hand, if electronic payment systems are sabotaged or break down during a crisis.
If both the NOK 1,000- and 500-notes disappear, Norwegians will be left with just the NOK 200-, 100- and 50-notes that were introduced less than 10 years ago, plus coins ranging from NOK 1-20.
NewsinEnglish.no/Nina Berglund