The elusive Bin Laden in Spain
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By h.b. - Dec 4, 2006 - 7:40 AM
Spain has a very high number of 500 Euro notes in circulation

EDITORIAL COMMENT -

For some time the Bank of Spain has been aware of the high number of 500 € notes in circulation in the country.
Most people have never even seen one of these high denomination notes, leading them to earn the nickname here of Bin Laden. We know he’s there, but we haven’t seen him.

Before the introduction of the Euro, people in Spain commented that the new currency would end the black economy and secret cash transactions, but the high numbers of 500 € notes gives us the image of suitcases full of the currency changing hands.

Now the Bank of Spain has been investigating and the Costa del Sol, Madrid and Levante areas of the country are considered to be home to 80% of the circulation of these notes in Spain. In fact Spain plays such a high part here, that these three areas even amount to 20% of all the European circulation of the 500 € notes.
It’s no huge leap of faith to consider these three areas as centres for the black economy, and also to rampant building.

The Bank of Spain can highlight these areas from extra information on the movement of the notes given to it by high street banks. Also they can highlight that real estate companies are the main users of the notes, but they have also seen high numbers in department stores and petrol stations.

With the Euro now back at almost record levels against the dollar, on the world stage these notes are worth more than ever, and the number in circulation in Spain is an indication of the strength of the Spanish economy. 26% of all 500 € notes were issued in Spain – latest numbers speak of 407 million of the notes in circulation worldwide.

Parliament recently had the chance of creating a census of all those who spend or receive 500 € notes – the proposal was debated as part of new fraud regulations, but was finally rejected.

Spain’s black economy shows all the signs of being alive and well.

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