Cash is still King – negative interest rates drive cash holdings

Cash holdings in Europe are on the increase. The value of cash in circulation rose 6.5% in 2015, the most since 2008. 1.08 trillion euros ($1.17 trillion) of banknotes circulated in 2015 (almost double from 2005).

Speculation suggests that negative interest rates on deposits and an influx of migrants who do not hold bank accounts (unbanked) are contributing factors. However, no detailed data is available at this point.

The ‘death of cash’ is still a very long way away.

Bloomberg - cash holding

Source: Bloomberg Business