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 Replies: 27 / Views: 3,988 |
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Valued Member
 United States
411 Posts |
Number of banknotes per individual in circulation
NZD Den AUD
6.6 $5 8.3
5.0 $10 5.6
13.0 $20 7.2
12.8 $50 31.1
5.3 $100 14.4
42.7 Total 66.6
New Zealand is circulating roughly 42.7 banknotes per inhabitant, while Australia is circulating 66.6 banknotes per inhabitant
Obviously New Zealand is much less dependent on the higher value denominations than Australia. Total circulation per inhabitant is NZD$1,514 in New Zealand vs AUD$3,241 in Australia. The two currencies trade within 8% of parity.
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The world's HDI countries with small population are among the likeliest candidates to adopt a Central Bank Digital Currency first (unless part of Euro Area). The following list is countries with HDI over 80% ranked by population.
38,128 Liechtenstein 91.6% Euro
77,265 Andorra 85.8% Euro
287,375 Barbados 80.0% fixed 2 to 1 with USD
341,243 Iceland 93.5% smallest HDI nation with floating currency
393,244 Bahamas 80.7% fixed 1 to 1 with USD
437,479 Brunei 85.3% fixed 1 to 1 with SGD
441,543 Malta 87.8% Euro
625,978 Luxembourg 90.4% Euro
628,066 Montenegro 81.4% Euro (not part of EU)
1,207,359 Cyprus 86.9% Euro
1,326,535 Estonia 87.1% Euro
1,701,575 Bahrain 84.6% part of Gulf cooperation Council
1,886,198 Latvia 84.7% Euro
2,078,938 Slovenia 89.6% Euro
2,722,289 Lithuania 85.8% Euro
2,881,053 Qatar 85.6% part of Gulf cooperation Council
3,473,730 Uruguay 80.4% Uruguayan peso (unstable)
4,105,267 Croatia 83.1% Kuna (future Euro)
4,270,571 Kuwait 80.3% part of Gulf cooperation Council
4,822,233 New Zealand 91.7%
4,937,786 Ireland 93.8% Euro
5,106,626 Oman 82.1% part of Gulf cooperation Council
5,421,241 Norway 95.3%
5,459,642 Slovakia 85.5%
5,540,720 Finland 92.0% Euro
5,792,202 Denmark 92.9% pegged to Euro
5,850,342 Singapore 93.2% cash rich banking nation
6,948,445 Bulgaria 81.3% future Euro
7,496,981 Hong Kong 93.3% cash rich banking nation
8,654,622 Switzerland 94.4% cash rich banking nation
8,655,535 Israel 90.3%
9,006,398 Austria 90.8%
9,449,323 Belarus 80.8%
9,660,351 Hungary 83.8%
9,890,402 United Arab Emirates 86.3%
10,099,265 Sweden 93.3% (most likely to have first CBDC)
10,196,709 Portugal 84.7%
10,423,054 Greece 87.0%
10,708,981 Czech Republic 88.8%
11,589,623 Belgium 91.6%
17,134,872 Netherlands 93.1%
18,776,707 Kazakhstan 80.0%
19,116,201 Chile 84.3%
19,237,691 Romania 81.1%
25,499,884 Australia 93.9%
32,365,999 Malaysia 80.2%
34,813,871 Saudi Arabia 85.3%
37,742,154 Canada 92.6%
37,846,611 Poland 86.5%
45,195,774 Argentina 82.5%
46,754,778 Spain 89.1%
51,269,185 South Korea 90.3%
60,461,826 Italy 88.0%
65,273,511 France 90.1%
67,886,011 United Kingdom 92.2%
83,783,942 Germany 93.6%
126,476,461 Japan 90.9%
145,934,462 Russia 81.6%
331,002,651 United States 92.4%
Edited by PacoMartin
06/09/2020 11:41 pm
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Valued Member
United States
411 Posts |
Addendum to above post
The total value of all banknotes in circulation in New Zealand is less than US$1000 per inhabitant, which would group them with Sweden and Norway as being highly developed nations with the least amount of cash in circulation (per inhabitant).
Cash per person in 2018 in circulation (BIS currencies)
$10,194 CH Switzerland
$8,471 HK Hong Kong SAR
$8,290 JP Japan
$6,378 SG Singapore
$5,238 US United States
$4,230 XM Euro area
...
$2,404 AU Australia
$2,003 KR Korea
$1,924 CA Canada
$1,683 SA Saudi Arabia
$1,417 GB United Kingdom
$1,009 RU Russia
$825 CN China
$682 SE Sweden
$680 MX Mexico
$513 AR Argentina
$327 BR Brazil
$311 TR Turkey
$230 IN India
$205 ZA South Africa
$196 ID Indonesia
New Zealand has much less cash per individual than the country's with which it shares a strong cultural history (United Kingdom, Australia, Canada).
Edited by PacoMartin
06/09/2020 11:58 pm
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Pillar of the Community
4628 Posts |
Speaking of Distribution, I read abook about NZ Banknotes and he compared the purchasing power of banknotes in the past to today (2014).
Back in 1934 when we got our first banknotes, they had a 10/-, £1, £5 and £50. They only printed 30k of the last and another 70k in 1938. The purchasing power and value was $3,300 in modern money (Probably $3,500 now).
Today's $100 note would be worth just £1/13/- now!
In 1967 a $100 note was worth $1,650 now - even the Dollar was worth $16.50 now and a 50 cent coin was worth $8.50
In 1991 with the $1 and $2 coins being issued, a $2 coin bought $4.30 worth of stuff now.
Inflation ended majorly in the 1990 era here, its been slight since - but my point here is.
One reason why money is not popular - is that its worthless compared to the past!
Of course an average wage in 1934 was around 45/- a week for a professional worker, 25/- for a factory worker and Unemployed relief workers got as little as 5/- a week!
But there was less to spend your money on back then, food, accommodation, fuel and a bit for amusement - maybe a shilling for church and a penny each for your children, maybe another for their school savings account. A penny would be worth around 30 - 50c in todays money.
You could have a nice night at the movies for 1/-, slap up meal for 2 - 2/6 and trams 6d at most!
Your salary came as cash and would likely be a pound and 10 bob note or a pile of silver coins mostly halfcrowns, shillings or florins and down to the last farthing. No one saw a £50 note unless they had won a trifecta or were seriously rich. Even a £5 was a rarity as it was at least 2 weeks wages!
By 1967 the average wage was up to $40 a week and your rent might be $5 - $12 a week, your car was a major purchase and would have sucked up at least $5 more a week in payments and fuel, food was getting better - figure $7 - $10 more and if you had a TV - you almost certainly had it on hire purchase or rental at least $3 a week - plus it needed a licence $5 more a year!
However in 1967, your wife probably did at least part time work and you could pick up overtime hours like that - some weeks a $100 could come in and only $35 go out! If the $100 came in, it would be in $10s and $20s as $100 notes were rare and you had to break them.
Movies would cost 50c, you took your car, otherwise the bus cost 5c and a pint of beer was 30cents!
Today you earn around $1200 a week, instantly $300 goes in Tax, accommodation another $400 at least, food $200 and theres not much left for incidentals. A $100 note is a trivial sum.
Edited by Princetane
06/13/2020 03:12 am
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Valued Member
United States
411 Posts |
Quote:
In 1967 a $100 note was worth $1,650 now Inflation is not quite as bad in the US. A $100 banknote in 1967 is worth $768 in the year 2020. Still in the US the cash in circulation per person has increased much more than you can account for by inflation, and even considering more people outside of the country are using $100 banknotes. You would think with so many non-cash ways to buy things. the amount of cash in circulation would either go down or at least remain steady. People simply use more cash in their daily lives than they used to. United States (cash in circulation per person) 2018 $5,238 2008 $2,927 1998 $1,679 1988 $870 1978 $428 Average of 6.46% per year United Kingdom (converted to USD using exchange rate at end of the year) 2018 $1,417 2008 $1,168 1998 $726 1988 $470 1978 $326 Average of 3.74% per year Edited by PacoMartin
06/14/2020 7:11 pm
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Pillar of the Community
 United States
7956 Posts |
I am a very quantitatively oriented person, so I believe these figures, but I have a hard time reconciling them to the behavior I see around me.
Since I work part-time in a retail establishment, I don't see the amount of cash transactions increasing over the last 10 years.
Does this mean Americans are losing faith in institutions like banks, and hoarding cash? This doesn't seem consistent with the savings rate.
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Pillar of the Community
4628 Posts |
PacoMartin
Good reasons why we use very little cash.
1. Eftpos - Debit card system, most small purchases and any purchase from $1 to $1,500 - $2,500 depending on bank can be bought with a debit card and paid for with either paywave to $80 or a 4 digit pin number.
It has been free and universal since the early 1990s and NZers use it for nearly everything. Of course a few die hard elderly people and some Maori and Islande poor people don't, but 98% of people do. Fees and things only come in, if its a credit card being used.
2. Pretty much since the 1980s - everyone sans illegal immigrants and under the table jobs - everyone's salary and or wages/benefits etc are direct credited quick and easy with universal internet banking. Again we have the 5% of losers who don't use it - mainly 98 year old women called Gladys Flowerbasket and Seefa I cantreado. This was apparent through lockdown - but its a tiny minority.
People stopped receiving pay packets with cash money in them around 1982.
3. Your figure of $1521 is high, I read in 2018 we had $6 billion of cash in circulation, that becomes around $1200 - $1250 per personas estimates of our population range between 4.8 and 5 million.
Plus our dollar (Peso) is only worth between 58 and 65 US cents, so $1200 is about $750 your money.
Take away that not every coin and note is in someones pocket and much is held at the reserve bank. Even though our notes are polymer, many of the $20s and lower last just a few years and have to be replaced a lot.
I have never seen anyone walk around with $1521 in cash, the most I see usually on a person is $200 which is a standard "flash cash" top up. I myself usually get out $40 or $60 at a time and I collect change coins to bank or give to my nieces and nephews - at most I get to $50.
4. Finally - our money is worthless, as I explained in an earlier post. Even a paper costs $3.50, the cheapest bus fare is $1.80 up here (And even that has a card which offers fares 35% cheaper and bus drivers grumble if they have to handle money as it slows the bus down (Its mostly poor people and Asian students who do). $100 is worth a decent sum, but you will never see one as they are associated with drug dealers, crime and the casino.
Australians mostly use $50s as their cash note and we use $20s, even though our dollar is in the 90s of their cents and we actually parred for a short time last year, at times our dollar slumps to as low as 70 Australian cents like it did when I went to Australia in 2013.
Their wages and average income are about 60% higher than ours (AUD $60K vs NZ $42K), but what I noticed was many things like food, drinks and attractions cost much more than us and some things like Petrol were actually cheaper!
Plus New Zealand has a lot of poverty mostly amongst Maoris and Islanders who live off state assistance and many are unemployed or underemployed earning minimum wage or less as do many migrants.
There are numerous stories of Indian (The turban wearers, not First Nations), Chinese and Polynesians exploiting their own people (Every month brings an Indian restaurant or liquor store with an Indian student being paid $2 per hour to work 100 hours a week and it will be an illegal immigrant). Even the job I am in was taken over by an Indian boss and they are basically ripping me off (I am leaving in a few days for a better one with a Kiwi boss).
Many Polynesians live in State houses or old cars and caravans and pretty much live from "benny" to "benny" payment - most ave bad health, do drugs, are illiterate and yet will eagerly spend what they have on drugs, boose, rap music, gambling and junk food. All these poor people wear down our economy, which is low wage for a 1st world country. Many of our professionals work overseas, so nearly all our doctors and dentists are Indians, Chinese or South Africans.
Edited by Princetane
06/14/2020 8:50 pm
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Valued Member
United States
411 Posts |
Quote:
I am a very quantitatively oriented person, so I believe these figures, but I have a hard time reconciling them to the behavior I see around me. Most people are shocked when they see the statistics on banknote circulation in the USA. Try asking ten people to rank the $1, $20, and $100 by the number of bills in circulation. I bet not more than one out of ten can tell you the answer is $100, $1, and $20 ranked from highest number of bills to lowest. Most people buy into the conspiracy theory that the government wants to kill cash. In fact, for the US and Euro Area banknotes are extremely profitable. For smaller nations cash is not a massively profitable export commodity. It is not that difficult to imagine New Zealand eliminating banknotes in a decade. Quote:
Many Polynesians live in State houses or old cars and caravans and pretty much live from "benny" to "benny" payment - most ave bad health, do drugs, are illiterate and yet will eagerly spend what they have on drugs, boose, rap music, gambling and junk food. All these poor people wear down our economy, which is low wage for a 1st world country. Many of our professionals work overseas, so nearly all our doctors and dentists are Indians, Chinese or South Africans. Nearly all "electronic money" is controlled by commercial banks who need to make a profit. Cash payments to citizens for benefits would generally be much more profitable if the government had "central bank digital currency". A pressing issue with government benefits for food is that many people sell them to get hard cash to buy booze and drugs. Trafficking in government benefits would be much more difficult if there was no cash. Quote:
Your figure of $1521 is high, I read in 2018 we had $6 billion of cash in circulation, that becomes around $1200 - $1250 per personas estimates of our population range between 4.8 and 5 million.
Plus our dollar (Peso) is only worth between 58 and 65 US cents, so $1200 is about $750 your money.
https://www.rbnz.govt.nz/statistics/f3As of the last Wednesday in March 2018 NZD$6,110,403 2019 NZD$6,528,928 2020 NZD$7,317,847 $7,317,847 divided by $1521 = 4.811 million POPULATION I imagine you did not realize that the banknotes in circulation in New Zealand increased by 20% in the last two years. Many people in most countries believe that cash is vanishing, and they are shocked to find that the value of cash in circulation is actually increasing at a fairly high rate. Quote:
$100 is worth a decent sum, but you will never see one as they are associated with drug dealers, crime and the casino. Yet 35% of the cash in circulation (by value) in New Zealand is in the $100 denomination. Most people have a bad impression about the cash in circulation in their country. I asked someone once how many $100 bills were in circulation in the US. He guessed 2 or 3. I told him it was well over 40. Edited by PacoMartin
06/15/2020 03:36 am
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Pillar of the Community
United Kingdom
709 Posts |
Interesting thread.
Covid 19 has changed the way people shop here in the UK. Will it change back, even partially? I don't know.
At the moment almost everywhere around where I am is taking card payments only, no cash, for health reasons. It must make it hard for you as a private individual if you don't have bank cards. As a business, it must be a lot easier not to have to handle cash. (Assuming your business is allowed to trade). Since people have been forced to use cards like this, I suspect it will accelerate progress towards a cashless society.
Not only has the way people pay been affected, but the kind of goods/services being bought has changed.
When it has all calmed down I would be interested to read about these economic effects.
There is an interesting historical precedent. One book I read stated that in the late 18th century England, just before the industrial revolution really started, there was only 7 shillings per person in coins. Ordinary people did not see the huge sums of money represented by banknotes. Trade still took place of course, but a lot of it at working class level went on by methods other than handing over cash.
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Pillar of the Community
4628 Posts |
Paco Martin 80% of it is also in the vaults at the Reserve Bank - not circulation, there was a period in lock down when ATM's ran out of cash - and they did not restock them until Level 2 4weeks ago. The Reserve Bank release the notes (Which are printed in Australia) as we need them and coins are minted in Canada or The Royal Mint - again vaulted. They are still circulating $5 and $20 from the 1999 - 2013 series and as for $100 most are in bank vaults and reserve bank. Paco martin - do you live in New Zealand - NO! But I do and I know what's going on - so lay off. Ask any Kiwi and unless they are poor or really old, they will pay cash no regard. Less than 6% of all the "Money" and Wealth in our country is in cash. I mean I could go to the bank and get some $100's but it would almost a be a federal enquiry, would be asked whey I need them, and no doubt many suburban branches don't have them. Even at the casino (I used to gamble until last year) and asked to get some $100s and they told me they will only cash out a winning ticket in that note, otherwise I was limited to $50s. I don't make these rules, but they are there. And seriously go into a corner store or a local shop and pay with $100 and see how far you get, they will likely say "Haven't you got anything smaller" and then scan it to see if its fake. The volume exists - but only with banks and sometimes a news article on meth or gangs comes on and they will show bricks of $100 notes with guns and stuff next to the drugs. Why would I make this up - 90% of the cash people has is $20s and less and $50s are just catching on. Edited by Princetane
06/15/2020 04:47 am
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Pillar of the Community
United States
7956 Posts |
Quote:
Most people are shocked when they see the statistics on banknote circulation in the USA. I wasn't commenting as much on the distribution of denominations as on the growth of cash per capita over time in the U.S. But I also forgot that "cash in circulation" also covers U.S. banknotes held abroad (which I assume is why the $100 has such a high percentage). Do we know whether the percentage of U.S. cash held abroad is increasing, decreasing or remaining about the same? My guess would be increasing as wealth in the middle and upper classes grows in second and third world countries where people may want to store their wealth in a stable currency like the USD. |
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Pillar of the Community
Germany
992 Posts |
Folks, there is no need to fight  PacoMartin and Princetane are both right. The number of cash in circulation (or ''in the hands of the public'' as the RBNZ calls it) still increases while the daily use of cash in transactions declines in New Zealand. In fact, the RBNZ did a study or inquiry about this phenomenon (which is not limited to NZ, other industrialized countries have it too). The report could be found on the RBNZ web-site a couple of months ago where I read it. Edited by redlock
06/15/2020 2:16 pm
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Valued Member
United States
411 Posts |
Quote:
Paco martin - do you live in New Zealand - NO! But I do and I know what's going on - so lay off. Ask any Kiwi and unless they are poor or really old, they will pay cash no regard. In any country, citizen perceptions are often a very poor measure of the changes in cash in circulation. You need to cross check your feelings against stats published by the central bank. From last Wednesday in March 2018 to March 2020 in NZ. 5.3% increase in circulation of small denominations 29.3% $50 banknote 19.8% $100 banknote Those percentages are large compared to changes in most countries. The percentage increase in US$100 banknotes for the most recent two years for which data is provided was 16.5%. The central bank numbers indicate that there is a sub-culture in New Zealand that is growing their dependence on cash. Quote:
PacoMartin and Princetane are both right. Agreed! Edited by PacoMartin
06/16/2020 11:32 am
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Replies: 27 / Views: 3,988 |
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Posted 06/09/2020 11:10 pm
