The Reserve Bank is reassuring the public that there's enough cash to "meet demand under any circumstances."
In a statement Assistant Governor Christian Hawkesby says the Reserve Bank has at least two years’ worth of replacement cash available if required.
“The banks and electronic payments systems are prepared, resilient, and will keep operating. When people are shopping, there will be cash and other payments systems available to support that,” Hawkesby says.
Meanwhile the Ministry of Health has confirmed eight more COVID-19 (coronavirus) cases, taking the New Zealand total to 28.
Here's the Reserve Bank's full statement.
Cash and other payments systems ready for COVID-19
The Reserve Bank and the banking system have plenty of cash on hand to meet demand under any circumstances,” says Assistant Governor Christian Hawkesby. Mr Hawkesby made the statement today after public interest and discussion about cash availability and use.
“We work closely with New Zealand’s banks, the companies that transport cash, and those that supply cash-handling equipment. They are all prepared for operating during all circumstances, including any unusual challenges that COVID-19 may pose.” he says.
“As an example, the Reserve Bank has at least two years’ worth of replacement cash available to feed into the system if required. We can keep cash flowing to and from branches and ATMs in the event of staff shortages or other difficulties anywhere in the cash system.”
“The banks and electronic payments systems are prepared, resilient, and will keep operating. When people are shopping, there will be cash and other payments systems available to support that,” he says.
The Reserve Bank is also reminding shoppers and retailers to practice good hand hygiene.
“Cash is just one of a number of frequently touched surfaces we encounter. The same is true for any other payment device whether it’s a card, phone or watch. This reinforces the need for good hand hygiene regardless of the way you pay or accept payment.”
“Retailers should use common-sense when it comes to cash. Businesses are not obliged to accept cash, but declining it may end up disadvantaging people who rely on its use. These people are more likely to be young, elderly, poor, disabled or financially excluded. Have respect and care for each other,” says Mr Hawkesby.
9 Comments
Despite assurances that there was no need we had - and still have looking at shoppers' trolleys today - a panic run on toilet paper.
Cash may not be any different further down the track.
Interesting where this thing is going.
Quite separate to self-isolation I think people are going to hunker down on discretionary spending.
People are already reacting in numerous ways. Talking to a couple of Napier CBD shop owners that I know - the word about is that they have never known it so quiet. Have a Thursday gym session followed by group coffee; coffee bar normally packed but empty today. Also seen numbers of kids around and about with parents over last couple of days, so wouldn't be surprised if absentee rates in schools is high as parents self-isolate children.
Sure they have. Why are people asking me now if their money is safe in the bank? Of course the answer to that has to be no, it is a loan to the bank.But they were uncomfortable of their money sitting there anyway, hence why they are thinking of withdrawing it and perhaps buying precious metals.
M0 compared to M3 used to be 3% when I first looked about 2010. Harder to say now since they discontinued the M3 series. Although sans housing that 3% might be enough to keep the economy running. The velocity of other classes of money will likely drop, while cash might increase.
May be? their best bet to keep the mouth shut or give wise saying/wisdom when finally open mouth.
It's human nature on the adversity timing, to say things to comfort.. but the effect is actually less prominent often it's being translated in the opposite direction. We've learnt so many historical tragedy that happened following the advise from those in commanding position.. Haysel stadium?, Titanic?, now this OZ Banks supported RBNZ? - What is actually the words of comfort/assurance gave out for? - .. protect who?..
All agreed in principalities, for most of the unexpected emergencies. .things do need assistance, rescue - but I just encourage to be fair & sensible, choose carefully 'the way Nat govt. deal with EQC claims' - Lab decision to use future generations borrowing to bail out certain features in the economy... should be in details manner for the disposal, not to be swindle back again into. the current unhealthy RE production economy. The Church of property priest Ashley - already indicated wink wink earlier this week? that those hand out might be siphoned out directly back to the Banks .. by those loan borrowers.. servicing their debt.. Nice eh?
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