Cash Is King as Europe Adapts to Negative Interest Rates: Chart
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Record 1.1 trillion euros of banknotes in use at end of 2015
Euro banknote circulation boosted by economic growth, markets
Europe’s ATMs worked overtime in 2015. A record 1.08 trillion euros
($1.17 trillion) of banknotes were in circulation, almost double the
value 10 years ago, according to data compiled by the European Central
Bank. That’s a counterargument to some bankers who say that electronic
forms of cash will replace paper money sooner rather than later.
ECB Balance Sheet Banknotes in Circulation, value of notes in billions of euros.
The
value of banknotes in circulation rose 6.5 percent last year, the most
since 2008. There are financial reasons - including negative rates on
deposits - but part of the increase could be related to the influx of
refugees, who don’t have bank accounts.
“Stronger economic growth, low interest rates as well as maybe some worries about more turbulence on financial markets are driving cash holdings,” said Johannes Mayr, an economist at BayernLB in Munich.
Source: http://www.bloomberg.com/news/articles/2016-01-26/cash-is-king-as-europe-adapts-to-negative-interest-rates-chart
