“Having examined the experience of the other European Union countries, it is clear that it would be possible to more efficiently manage cash, at the same time encouraging private cash handlers to become more involved in the cash management process and improve the quality of provided services. Therefore, we invite market participants to discuss how to achieve the optimum result,” says Marius Jurgilas, Member of the Board of the Bank of Lithuania.
According to him, in ensuring efficient activity, it is particularly important to properly clarify the distribution of functions in the cash management chain. The activities of the central bank could be the issuing of cash to ensure market demand, acceptance of excess cash suitable for circulation as well as acceptance and destruction of cash unfit for circulation. Other activity related to cash management and their recirculation is of a commercial nature and could be performed by banks and CIT companies, ensuring a competitive environment.
The Bank of Lithuania invites banks, CIT companies and other interested institutions to discuss the means proposed in the document Reform of the Cash Supply System or offer other means that could help align the interests, related to cash demand, of the Bank of Lithuania and other participants of the cash system, creating in the country the most suitable cash cycle model.
Taking into account the notes, comments, and expressed opinions of the participants of this public discussion, the Bank of Lithuania will prepare specific optimisation implementation suggestions for the cash supply system in the country.