Reform of the cash supply system
Seeking to increase the efficiency of the cash supply system in Lithuania and optimise the cash management processes, in 2015 we began to implement the Project on the Reform of Cash Circulation. Its goal is to reform the cash management process of the Bank of Lithuania and transfer part of the cash management functions to domestic cash handlers.
In 2015, we initiated a public discussion with participants of the cash supply system – banks, CIT companies and other market participants. The discussion fostered dialogue on measures that could help find an optimal solution, allowing to align interests of the Bank of Lithuania and cash supply system participants in providing the cash supply, and help the Bank of Lithuanian create the best cash cycle model.
Seeking to increase the efficiency of the cash supply system, as of 1 July 2016 we implemented the following changes:
- the Cash Department began its operation at the Bank of Lithuania in place of the Cash Service. The structure was changed by implementing one of the Bank of Lithuania’s strategic objectives – to increase the efficiency of the cash supply system. Change was needed, since the volume of transactions related to cash management and storage decreased as a result of both the reform in this field and the introduction of the euro.
- The new Department started checking whether cash handlers manage cash properly, and whether the euro that they issue into circulation is genuine, unworn, and suitable for circulation. For more information, click here.
- A new procedure for the operation of the Bank of Lithuania cash offices came into force. Minimum packages of accepted euro are exchanged into larger denominations, bank opening hours are shortened, other instruments optimising the cash cycle are installed. In addition, domestic cash handlers are ensured the conditions to provide the service of packaging euro coins into rolls.
- In Vilnius, services for residents are concentrated at one cash office (instead of two locations): the Bank of Lithuania opened a renewed and more convenient cash office, located at Žirmūnų g. 151. Having analysed the services provided to the public, we expanded the volume of some services and narrowed that of others. More information on the services provided by the Bank of Lithuania cash offices is available here.
- Seeking to facilitate acquisition of numismatic items, we plan to launch a new e-shop by Spring 2017.