Swiss National Bank (SNB) Issuing and redeeming banknotes

Issuing and redeeming banknotes

Network for issuing and taking back banknotes

Banknotes are issued and recovered through the SNB's network of cash distribution services. This network comprises the SNB's two own bank offices (head offices in Berne and Zurich) as well as 14 agencies.

The SNB's three own bank offices constitute the largest part of Switzerland's network for the provision of currency. These offices have processing and storage capacities and are responsible for the provision of currency in their regions. They are also in charge of servicing the agencies they are responsible for.

The agencies are cash distribution services operated by cantonal banks on behalf of the SNB. These agencies are responsible for issuing and taking back cash at their place of business and - unlike the three SNB bank offices - only have limited processing and storage facilities for cash.

Customer relationship

Customers cannot simultaneously offer and demand notes of the same denomination. For example, they cannot return 100 franc notes and get new ones at the same time. The SNB thus forces the customer to pre-sort the banknotes. Banknotes received by the customer should again be spent in the same denomination and only the excess delivered to the SNB. This rule keeps customers from passing on to the SNB the sorting necessary for their own purposes. Some customers have outsourced this pre-sorting to cash handling companies.

Numbers of banknotes issued and received

The SNB issues a large number of banknotes every year and a large number are also returned. In 2010, approximately 492 million notes were issued and 483 million received. With an average banknote circulation of 325 million, a banknote was therefore returned to the SNB 1.49 times on average in 2010, which is just under the long-term average of 1.50. In other words, in a three-year period, the banknotes are returned to the SNB roughly five times. The illustration below shows that the annual return is different for each denomination. Overall, the large denominations return to the SNB more frequently than the small ones.

Illustration: Banknote return to the SNB (2010)