Lithuania is preparing to phase out older euro banknotes as it approaches the tenth anniversary of adopting the currency, a move signaling a broader modernization of its financial infrastructure. The transition, slated to coincide with the anniversary on January 1, 2025, will notice the gradual removal of existing euro notes from circulation.
President Gitanas Nausėda emphasized the stabilizing effect of the euro on the Lithuanian economy, noting the country’s resilience during the 2020 COVID-19 pandemic compared to the economic downturn experienced during the 2009 financial crisis. “Currently, the euro protects us from global financial shocks,” Nausėda stated, as reported by LRT.lt. He highlighted the significant growth in Lithuania’s GDP per capita over the past two decades, increasing from less than 40 percent to nearly 90 percent of the European average, with convergence accelerating after the euro’s introduction in 2015.
The decision to update the banknotes is part of the European Central Bank’s (ECB) ongoing efforts to enhance the security and durability of euro currency. Although the designs of the banknotes themselves will remain consistent across all Eurozone nations, each member state retains the right to customize the reverse sides of the coins. Lithuania initially adopted the euro on January 1, 2015, replacing the Lithuanian litas.
The upcoming changes are also being framed within the context of broader economic developments in the Eurozone. The ECB is preparing for the introduction of new euro banknotes, a process that will involve a phased withdrawal of older denominations. This initiative is occurring as the Eurozone navigates a complex economic landscape, including the ongoing war in Ukraine and fluctuating exchange rates with the US dollar. In July 2022, the euro reached parity with the dollar for the first time in twenty years.
The Lithuanian Bank (LB) is hosting an annual economic conference in Vilnius, featuring ECB President Christine Lagarde, Finance Minister Rimantas Šadžius, and the Governor of the National Bank of Ukraine, Andriy Pyshnyy. The conference will focus on European economic resilience and commemorate the approaching tenth anniversary of the euro’s adoption in Lithuania. The LB has noted the success of the euro in Lithuania over the past decade, citing increased financial stability and economic growth.
The phasing out of older euro banknotes is scheduled to occur alongside preparations for the introduction of new euro denominations in 2025. The ECB has not yet announced a specific timeline for the complete removal of older notes from circulation.
