Euro notes have become the world's favourite form of cash because of Europeans' financial habits rather than international demand for the young currency, according to a European Central Bank report released on Monday.

Banknote holdings per person are almost twice as high in the 13-country eurozone as in the US, the study shows, while eurozone citizens typically withdraw 50 per cent more each time they use a cash machine.

Since the introduction of euro notes and coins in 2002, circulation has soared above expectations. Last year, the value exceeded the value of dollar bills in circulation.

http://news.moneycentral.msn.com/provider/...&ID=7079822

In case anybody is interested in the ECB report, here is the press release ...

http://www.ecb.int/press/pr/date/2007/html/pr070625.en.html

... and somewhere on the right of that page there is a link to the full review in PDF format.

Christian