Issuance

Legally, both the ECB and the national central banks of the participating countries have the right to issue euro banknotes. In practice, only the national central banks physically issue and withdraw euro banknotes (as well as coins). The ECB does not have a cash office and is not involved in any cash operations. The legal issuers of euro coins are the participating countries.

Stocks and circulation

The ECB closely monitors the stocks of euro banknotes and coins. Potential shortages of banknotes in one country can be compensated for by surplus stocks from a national central bank in another country. Any major changes in demand can be met by drawing from an additional strategic reserve.

Objectives and tasks

The primary objective of the ESCB is to maintain price stability.

The basic tasks are:

• the definition and implementation of monetary policy for the euro area;
• the conduct of foreign exchange operations;
• the holding and management of the official foreign reserves of the euro area countries (portfolio management).
• the promotion of the smooth operation of payment systems.

The Governing Council consists of:

• the six members of the Executive Board, plus
• the governors of all the national central banks (NCBs) from the 12 euro area countries.

Responsibilities of the Governing Council:

• to adopt the guidelines and take the decisions necessary to ensure the performance of the tasks entrusted to the Eurosystem;
• to formulate monetary policy for the euro area. This includes decisions relating to monetary objectives, key interest rates, the supply of reserves in the Eurosystem, and the establishment of guidelines for the implementation of those decisions.

Meetings and decisions

The Governing Council usually meets twice a month at the Eurotower in Frankfurt am Main, Germany.

At its first meeting each month, the Governing Council assesses monetary and economic developments and takes its monthly monetary policy decision. At its second meeting, the Council discusses issues related to other tasks and responsibilities of the ECB and the Eurosystem.

The minutes of the meetings are not published, but the monetary policy decision is announced at a press conference held shortly after the first meeting each month. The President, assisted by the Vice-President, chairs the press conference.