Jan. 12 (Bloomberg) -- The Bundesbank said the number of counterfeit euro banknotes removed from circulation in Germany rose last year.

The Frankfurt-based Bundesbank withdrew 41,000 banknotes, up from 40,000 in 2007, it said in an e-mailed statement today. That’s a 2.5 percent increase.

“Pleasingly, with about five forgeries a year for every 10,000 citizens, Germany is below the euro-region average,” Bundesbank board member Hans Reckers said in the statement.

Losses caused by counterfeited banknotes dropped to 3.5 million euros ($4.7 million) in 2008 from 3.8 million euros in 2007, due to fewer forgeries of the 200-euro note.

The 100-euro note was the most popular note with forgers, accounting for 32 percent of notes taken out of circulation in the second half of last year, the Bundesbank said.

To contact the reporter on this story: Simone Meier in Frankfurt at smeier@bloomberg.net

Last Updated: January 12, 2009 09:14 EST