Most people don't have trouble getting cash in Sweden, but businesses have trouble depositing it as many ATMs do not accept cash deposits. As a result many businesses have stopped accepting cash.
The Riksbank denies that it has been pushing for a "cashless society" saying that they just meet demand. The push comes from society and in particular the popularity of the SWISH phone app.
Sweden's cash in circulation (CIC) went up 10% in 2018 and up 16% in the 500kr banknote most often found in ATMS. This is the first increase after a decade of decreases. There are now nearly
eight 500kr banknotes per inhabitant in circulation in Sweden. The 1000kr banknote still circulates in only token quantities.
There are two ways to interpret the uptick in CIC. One is that people are exercising
use it or lose it behavior regarding cash, or two it is an exercise by the Riksbank to reduce any additional fear that might be generated by the introduction of Central Bank Digital Currency CBDC this year or next year.
Production of banknotes has been moved to Britain under a new contract with DeLaRue, although it seems as if the number of banknotes purchased is still going to be treated as a State Secret.
Norway, whose banknotes are produced in France, publishes it's production figures. Norway produced 75,610,000 of the new series of 500kr banknotes which were launched 18 October 2018. Norway has not produced a 1000kr banknote since 2005, so the big question is will only a token number of 1000kr banknotes be produced in 2019?
Sweden is circulating
only 3.336 million 1000kr banknotes for a population of over 10 million, but we don't know how many notes are sitting in vaults. It seems unlikely that Sweden only ordered 4 or 5 million notes.
Most countries are increasing currency in circulation at percentages well above GDP growth.
Quote:
Bank for International settlement comparing growth in Currency in circulation to Growth in GDP from period
2006 -2016
Growth in CIC Country Growth in GDP
-44% Sweden 22%
-2.4% Norway -7.6%
20% Denmark 8.2%
27% Japan 9.0%
59% Canada 36%
76% New Zealand 54%
78% Switzerland 54%
79% Eurozone 7%
81% Australia 63%
84% U.K. -2%
87% U.S. 35%
89% Morocco 53%
110% Thailand 83%
135% South Africa 135%
148% Oman 46%
170% Brazil 160%
178% Russia 165%
180% Nigeria 179%
183% Colombia 74%
191% Kazakhstan 65%
198% Israel 79%
208% Kenya 173%
224% Mexico 85%
234% Chile 104%
243% Indonesia 240%
250% South Korea 69%
280% Iraq 140%
287% India 263%
318% Algeria 44%
329% Iceland 18%
350% Pakistan 107%
355% Ukraine -13%
359% Turkey 228%
362% Bolivia 195%
369% Egypt 213%
372% Afghanistan 166%
413% Myanmar 365%
441% Angola 114%
442% Mozambique 33%
522% DR Congo 145%
621% Sudan 167%
904% Argentina 135%
The UK introduced a new £50 banknote on Nov 2, 2011 and it is circulating in much larger numbers than the previous two series introduced on Mar 20, 1981 and Apr 20, 1994.
So UK has increased their CIC nearly the same percentage as the USA despite having a decreasing GDP over the decade.
Posted 12/03/2018 7:09 pm
