Think cashless societies are inevitable? Figures show that cash reigns in times of covid-19
While the media would have you believe covid has pushed us closer to a cashless society than ever before, reports are emerging from around the world that nations are finding comfort in cash.
The value of euro banknotes in circulation has increased by the largest amount since the 2008 financial crisis.
United Kingdom: Cash usage increases by two thirds in the UK
Cash withdrawals in the UK have increased by two thirds following the easing of lockdown measures on 4th July 2020, which saw pubs and restaurants re-open across the nation.
The value of cash in circulation since the beginning of the year has increased by over 27 percent, according to the National Bank of Poland.
In the first half of 2020, the volume of cash in circulation increased by 14.4% year over year to UAH 486 billion.
United States: Americans find comfort in cash during the Covid-19 pandemic
The Financial Times, in its piece from 17th July 2020, suggests that Americans are finding comfort in the security of cash during the crisis.
Canada: Cash demand surged in Canada
According to the Bank of Canada’s latest publication, notes in circulation have “increased significantly in March and April 2020 compared with the same two months in the previous five years.”
Between December 31, 2019 and April 30, 2020, Mexico saw an unprecedented spike in cash demand. The central bank credited this to the public taking precautions in light of the pandemic.
New Zealand: New Zealand cash circulation increased by $1 billion
Cash in circulation increased by $1 billion dollars ahead of the covid-19 imposed lockdown in New Zealand, demonstrating that Kiwis are far from ready to live in a cashless society.
According to The Times of India “currency in circulation has risen to 26.9 lakh crore - a hike of 10% - since the lockdown began” since 20th March this year.
Nigeria: Currency in circulation hits N2.39tn
The stock of money in circulation in Nigeria increased by N95.13bn from N2.29tn at the end of June to N2.39tn in July, data from the Central Bank of Nigeria have shown.
Money in supply within the Kenyan economy has defied the shocks of the COVID-19 pandemic expanding by Ksh.203 billion or an equivalent 30.7 per cent.