The Cash Cycle
The Banco de España's role in the cash cycle
The Banco de España, as a national central bank in the Eurosystem, participates in the issuance of euro banknotes and, on behalf of the Spanish State, puts euro coins into circulation.
The euro coins and a part of the euro banknotes put into circulation by the Banco de España are produced at the Spanish National Mint. In addition, the Banco de España puts into circulation euro banknotes received from other NCBs under the decentralised production scheme with pooling established by the ECB. The Banco de España distributes euro banknotes and coins to its branch network for subsequent entry into circulation. The network of Auxiliary Depositories 
(70 KB) for banknotes is a network of centres of banknote's custody of the Banco de España.
Credit institutions withdraw banknotes and coins from the Banco de España to meet the public's demand for cash. Banknote transport and handling operations between the Banco de España and credit institutions are performed by cash transport companies that operate for the credit institutions.
The public withdraws cash from credit institutions through teller windows and, more importantly, through automated teller machines, and uses it for purchases. Traders and the public deposit cash at credit institutions through teller windows and, to a lesser extent, through cash acceptors.
Credit institutions deposit at the Banco de España the cash they receive from the public, for which they again make use of cash transport companies.
The Banco de España acts, among other things, as a filter in the cash cycle that keeps the circulating banknotes and coins in good condition and withdraws counterfeit currency.