Our latest CashMoney in physical form such as banknotes and coins. and Crises episode explains how physical currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. is managed in times of a pandemic and why it is essential to the proper functioning of the national economy, concluding that:
• Banknotes pose no more risk of disease transmission than other everyday objects such as debit cards, ATM PIN-pads and handrails.
• A combination of modern banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. manufacture and improved bulk cash managementManagement and control of cash in circulation. practices maintain the highest possible quality of currency in circulation.
• The sooner the Cash CycleRepresents the various stages of the lifecycle of cash, from issuance by the central bank, circulation in the economy, to destruction by the central bank. is restored after a catastrophe, the sooner economic recovery can begin.
• Loss of confidence in cash driven by unfounded fears that banknotes act as vectors of disease can foster financial exclusion and slow economic recovery following a pandemic.
• Cash adds value to society by generating profit for the issuer.
• Policies driven by ideology rather than epidemiology will do further harm by forcing cash payments to be made via electronic means which either don’t exist or are not disaster resilient. Alternative paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. options are rarely contact-free and the majority of digital transfers made in low-and-middle-income economies today involve cashing out somewhere in the cycle.
Find more information on the Cash and Crises series by clicking here and watch our previous episodes below:
Episode 1: Digital Money
Episode 2:The Role of Central Banks in Disaster Management
Episode 3: Multiplier Effects
Episode 4: Pre-paid card payments and settlements
Episode 5: The Cash Cycle in Disasters
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