The Royal Australian MintAn industrial facility manufacturing coins. More recently reported an unexpected rise in the demand for coins due to an increased demand for cashMoney in physical form such as banknotes and coins. More. Indeed, figures of the annual report show that a total value of $140 million coins were put into circulation during 2015-16 financial year, the highest amount since 2009-10.
According to Ross MacDiarmid, Chief Executive of the mint, many reasons could explain the rise. First, in a context of economic uncertainty, people might have decided to get back to a more reliable and tangible payment instrumentDevice, tool, procedure or system used to make a transaction or settle a debt. More, which also offers anonymity. In addition, customers may have lost trust in modern technologies, notably after nationwide outages occurred.
Besides, studies demonstrate that people tend to spend less when paying cash rather than when using a credit card. As a consequence, banknotes and coins are often preferred because of their budget control properties. Steve Worthington, adjunct Professor at Swinburne University, added that many Australians might be hoardingThe term refers to the use of cash as a store of value. However, the term has a negative connotation of concealment, and is often used in the context of the war on cash. See Precautionary Holdings. More moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More in cash rather than in a bank account because of the extremely low interest rates, and also because they might feel more comfortable when having concrete money with them.
As of now, about 5 billion coins and 1.3 billion banknotes are in circulation in Australia.
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