The demand for Swiss banknotes: some new evidence

Katrin Assenmacher, Franz Seitz and Jörn Tenhofen

No 2019-02, Working Papers from Swiss National Bank

Abstract: Knowing the part of currency in circulation that is used for transactions is important information for a central bank. For several countries, the share of banknotes that is hoarded or circulates abroad is sizeable, which may be particularly relevant for large-denomination banknotes. We analyse the demand for Swiss banknotes over a period starting in 1950 to 2017 and use different methods to derive the evolution of the amount that is hoarded. Our findings indicate a sizeable amount of hoarding, in particular for large denominations. The hoarding shares increased around the break-up of the Bretton Woods system, were comparatively low in the mid-1990s and have increased significantly since the turn of the millennium and the recent financial and economic crises.

Keywords: Currency in Circulation; Cash; Demand for Banknotes; Hoarding of Banknotes; Banknotes Held by Non-residents (search for similar items in EconPapers)
JEL-codes: E41 E52 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2019
New Economics Papers: this item is included in nep-eec, nep-his, nep-mac, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Journal Article: The demand for Swiss banknotes: some new evidence (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:snb:snbwpa:2019-02

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