The demand for Swiss banknotes: some new evidence

Katrin Assenmacher, Franz Seitz and Jörn Tenhofen

Swiss Journal of Economics and Statistics, 2019, vol. 155, issue 1, 1-22

Abstract: 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 analyze 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 E58 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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DOI: 10.1186/s41937-019-0041-7

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