The role of the central bank in the cash cycle

Maintaining the supply of cash in the economy is one of the Bank of Finland s core tasks. Cash (banknotes and coins) has maintained its position as a means of payment for centuries, although the spread of electronic payment means has progressed rapidly in recent decades. Together with the other stakeholders involved in the cash supply cycle, the Bank of Finland is responsible for ensuring the authenticity, quality and availability of cash throughout Finland. The central bank s focus is concentrated on wholesale cash distribution. This article describes how the Bank of Finland sets its service level in cash supply. We also assess the position of cash relative to card payments.