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The Cash Cycle in Disasters

Categories : Cash is efficient, Uncategorized
April 23, 2020
Tags : ATM, Cash cycle efficiency, Crisis, Demand
Cash and Crises, a series of financial literacy video series by CashEssentials releases its fifth episode with a social mission to support the relief and development community in understanding how cash is managed for society in times of crisis.
Communication Team / Equipo de Comunicación

Ever wondered how the Cash Cycle works? Our latest Cash and Crises episode explains how physical currency is managed in times of a disaster and why it is essential to the proper functioning of the national economy.

• The ‘Cash Cycle’ refers to the circulation of cash in the economy after it has been issued by the
central bank.
• Trust in the robustness, efficiency and security of the cash cycle is essential to the proper
functioning of the national economy.
• The sooner the Cash Cycle is restored after a catastrophe, the sooner economic recovery can
begin.
• Cash demand increases enormously following a sudden-onset disaster, with the need for lowdenomination
notes remaining higher than normal for some time, usually months.
• Cash adds value to society by generating profit for the issuer.
• There seems to be a requirement to temporarily expand ATM channels following a disaster.
• Aid organisations should contract cash-in-transit operators for last-mile delivery, not carry cash
themselves.

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

Epsiode 4: Pre-paid card payments and settlements 

 

Download the PDF version of the video:

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