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The total cash issuance of a central bank consists of domestic transaction and hoarding balances as well as foreign demand. The different shares are not known exactly. The introduction of the new Europa series of banknotes in the euro area offers the opportunity to calculate transaction balances with the help of a biometric method. Our results indicate that transaction balances are very low. [ABSTRACT FROM AUTHOR]

In this article, we analyse the volume of euro banknotes issued by Germany that circulate abroad. Inferences are drawn from a coin model. Our approach suggests that foreign demand has increased since 2002. At the end of 2009 nearly 50%, the equivalent of €170 billion, is held outside the euro area. [ABSTRACT FROM PUBLISHER]