04.11.2022.

Difficulties relating to trade in/transfer of Danish krone banknotes

Disturbances in the international market relating to the transfer (repatriation) of Danish krone (DKK) banknotes to Denmark have affected the sale/purchase of these banknotes at home. After contacting its foreign correspondent banks, the NBS has been informed that they have stopped trading in DKK banknotes until further notice. They are working on finding a solution how to start trading in these banknotes again, but this is uncertain at this point, as commercial banks in Denmark, through which the repatriation of DKK banknotes takes place, discontinued this process due to some regulatory requirements.

Without delay, the NBS also contacted the Central Bank of Denmark to obtain information about this issue and its possible solutions.

Here it was confirmed that the problem arose between commercial banks from Denmark and their foreign correspondent banks and that the current disruption is not the result of regulations or restrictions imposed by the central bank, but of business decisions of Danish banks. It was noted that efforts were made to find an appropriate solution.

Based on the above information obtained from its correspondent banks, the NBS notified commercial banks in Serbia that, due to restrictive measures in Denmark relating to international trade in/purchase of DKK cash, the NBS will stop accepting the Danish krone and banks will be notified if the above currency is accepted again.

It should be emphasised, however, that domestic commercial banks may continue to sell/purchase these banknotes to/from clients, in line with their business policy and if they have the possibility to trade in DKK banknotes with their foreign correspondent banks, i.e. the NBS imposes no restrictions whatsoever.

The NBS will continue to monitor market developments on this issue and take necessary activities under its remit, of which it shall timely inform the public.

Governor’s Office