Demand

From the US phasing out the penny to Germany’s push for cash payment rounding, the relationship between coins and banknotes is transforming—but coins are far from obsolete. While banknotes grow as a store of value, coins continue to play a vital role in everyday transactions, supported by smart denominational strategies and durable innovations. Explore how central banks are adapting currency structures, balancing tradition with efficiency, and ensuring coins remain essential in the diverse ecosystem of cash.

Despite predictions of a cashless society, cash remains vital across all age groups. New ECB research reveals older adults prefer cash for transactions, but young adults pay with cash at roughly the average rate and keep cash reserves. The perceived importance of cash is rising for all!

After exceptional growth in banknote demand during the pandemic years, high inflation and growing interest rates have led to slower growth in 2022. But uncertainties continue to fuel precautionary demand for cash. Over 75% of currencies experienced positive growth of the value of cash in circulation.

Available statistics show that most countries around the world experienced a run for cash in 2020 due to the Covid-19 pandemic.

During the Covid-19 pandemic, Mexicans did not switch en masse to CoDi, the central bank’s mobile payments platform launched in 2019. Cash continues to dominate retail payments.

In Mexico, cashless payments' advocates have seized on the Covid-19 pandemic to nudge consumers away from cash. But they conveniently forget the exceptional levels of financial exclusion in the country.

Cash Transfers are supporting Madagascar’s poorest and most vulnerable citizens during the Pandemic, but there are unintended consequences.

Following the UK Government's announcement to protect the future cash system, a new survey shows that 76% of consumers think that the Government should do more to help people continue to have access to their cash.

According to the latest edition of the IFOP survey for Brink's France (27 and 28 0ctober, 2020), cash remains the most frequently used means of payment by the French. 79% of the population are opposed to its disappearance.

Bank Al Maghrib, the central bank of Morocco has published its annual report on market infrastructure, payment instruments and financial inclusion. It concludes that Moroccans are sticking to cash.

According to the recently published Annual Report of the Reserve Bank of India, cash in circulation grew by 14.7% in value and 6.6% in volume between March 2020 and March 2019.

Set against the profound health and economic consequences of the global COVID-19 pandemic, the Reserve Bank of Australia’s reporting that at the end of April, the Australian Dollar currency in circulation hit a new all-time high, in part fueled by a large jump in Australian Dollar $50 and $100 banknotes issued at the end of March 2020. In fact, in the month of March currency in circulation grew by $2,200 million, the 15th largest single monthly rise on record and the highest (by value) March increase ever.