Table: Swiss banknotes in circulation on average in 2023
* These banknotes belong to the sixth series

The high proportion of large denominations indicates that banknotes are used not only as a means of payment but also - to a considerable degree - as a store of value.

Banknote circulation has risen drastically in terms of value since the SNB started business in 1907. To some extent, this corresponds to inflation. The illustration below shows the development of nominal banknote circulation and of banknote circulation in real terms, deflated using consumer prices (at the price level of 1907). These figures include banknotes of the former banks of issue, which circulated parallel to SNB banknotes until 1910, as well as Bundeskassenscheine (certificates redeemable in gold), which were issued by the Confederation and in circulation between 1915 and 1929. After that, from the end of 1907 to the end of 2023, nominal banknote circulation increased by 85,949%. The growth rate for banknote circulation in real terms is decidedly smaller, but still considerable at 7,083%.

The increase in banknote circulation is, in part, also a reflection of economic growth. The illustration above depicts the path of banknote circulation in relation to nominal gross domestic product (GDP). This shows that the ratio between banknote circulation and nominal GDP has fallen steadily since the end of the Second World War. In other words, banknote circulation has risen at a slower rate than nominal GDP. In the 1960s, the proportion of banknotes in circulation, at 16% of GDP, was higher than it is today. This development reflects the progress in payment technology, which has contributed to cashless payment transactions becoming more widespread and allowed companies and households to keep less cash on hand. By contrast, the first four decades of the century saw banknote circulation rising as a proportion of nominal GDP. Initially, the reason for this development was the increasing replacement of metal coins and drafts by banknotes in the early years of the SNB's existence. Later on, general uncertainty during the First World War, in particular, as well as deflation at the beginning of the 1920s and again during the Great Depression in the 1930s, all contributed to the stockpiling of banknotes.
Since 2008, cash has regained its significance as a store of value. The persistently low level of interest rates is a major factor in the rise in demand for banknotes. In addition, the financial market and sovereign debt crises have helped to render cash holdings more attractive. The increased demand for small-denomination notes mainly reflects positive developments in private consumption.