Tribune de Geneve: Finances: 11.May.2017 | 14:27 CET:
Original Article In French: La Suisse n’a jamais eu autant de cash.
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Physical money is still very popular in Switzerland. Citizens feel reassured in the current context.
The Swiss bet on cash. No country on the planet has as many species in circulation per capita as Switzerland, as the Blick in its edition of 11 May 2017 notes.
From 35 billion francs ten years ago, the monetary masses now amount to nearly 80 billion, or about 9,300 francs per capita on average and Orell Fussli prints for nearly 100 tons of notes each year. This holds promise of good days in the future for the 20 francs note. This cut is the most widespread, with that of 100 francs. Both represent one fifth of the banknotes in circulation, ie 84 million units worth CHF 1.7 billion.
The rise in the monetary masses meets the demand because the Swiss love the hard cash during troubled times. The current level of liquidity is 12% higher than it was at the end of the 1970s.
“With the outbreak of the financial crisis and the introduction of negative rates, the Swiss turned to cash again, a trend that has not weakened since,” said Fritz Zurbrügg, vice president of The SNB and Head of the 2nd Department, responsible inter alia for Banknotes and Coins.
The Swiss have not forgotten that UBS almost disappeared in 2008 and that it was better to have cash to not see its accounts blocked.
The SNB does not comment on this attachment to real money, but its policy of negative rates is inoperative if the Swiss collect banknotes. There is no question, however, of banning physical money. “These rumors are very exaggerated,” said Fritz Zurbrügg.
The Advantages of Paper Money:
The Swiss are very fond of bank-notes.
“There are indeed many advantages. Payments are simple and definitive right away. No fear of a technical error and they allow a better control. Without forgetting a certain anonymity and a great protection of the rights because they allow to pay without being able to be controlled “, underlined Hans Gersbach, professor at the EPFZ and adviser of the German Chancellor Angela Merkel From this to say that the presence of the cash prevented that the negative rates are also applied to the small savers, “it is very probably the case”, added the professor.
Image Credit – Jon Worth – Flickr – Swiss Money.
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