Lehman collapse led to euro note ‘hoarding’

Demand for euro notes, especially large denominations, soared in 2008 after the collapse of Lehman Brothers investment bank apparently triggered a flight to cash. The value of euro notes in circulation leapt in the first half of October by between €35bn and €40bn, the European Central Bank said in its annual report released on the 21 April 2009. Demand for €100 and €500 notes was 'particularly high' in the final quarter of the year, the ECB said, 'and was to a large extent driven by demand from outside the euro area'.

ECB: Annual Report 2008 http://www.ecb.int/pub/pdf/annrep/ar2008en.pdf

---