The Canadians have not turned their backs on the cash

Les Canadiens n’ont pas tourné le dos au comptant

Photo: Michael Monnier Duty
At the time of the investigation, the withdrawal means at atms amounted to$ 195 against$ 140 in 2017, but, sign of the times, the amount of withdrawals at the counter has, as to him, melted in half in three years, an average of 289$ only and$ 141.

The Canadians have not turned back to the cash in spite of the fear of the COVID-19.

The amount of cash in circulation in the canadian economy has not decreased with the onset of the pandemic of the novel coronavirus. On the contrary, reports a study by the Bank of Canada unveiled last week, it is rather “increased significantly” in march and April last, ” both in absolute dollars and as a percentage compared to what has been observed in the past “.

This increase is likely the result of the prudence of financial institutions, which have increased their reserve of notes in the event of a disruption in their supply, as well as the decrease in deposits for tickets from retailers, but not only, says the study. Consumers also had more cash on them, their portfolio contains a median sum of $ 85, compared to 70 $ a year ago. At the time of the investigation, the withdrawal means at atms amounted to $ 195 against $ 140 in 2017, but, sign of the times, the amount of withdrawals at the counter has, as to him, melted in half in three years, an average of 289 $ only and $141.

The fear of cash

These trends should help to reassure the canadian central bank. From the beginning of the pandemic, it has not hidden its fear that the fear of some retailers and consumers of the virus can be transmitted by the bank notes ” create unjustified difficulties for people who depend on cash to make their purchases.” Last week, the minister of Finance of Québec, Eric Girard, launched to turn the same appeal to “all of the traders so that they do not penalise” unfairly these citizens, while recalling that he had to, as much as possible, ” continue to favour modes of electronic payment without contact “.

85 $

This is the sum median that kept them in their portfolio with the Canadians during the pandemic, according to a study by the Bank of Canada, up from $ 70 last year.

The day before, the Institut national de santé publique du Québec (INSPQ) had noted that, although ” some studies have shown that bank notes can be contaminated by pathogenic micro-organisms, including viruses, […] there has been no documented case of transmission of the [SARS-CoV-2] through the exchange of currency, credit cards and bank notes “.

However, if 35 % of respondents to an Ipsos poll, conducted from 3 to 22 April, with 4000 Canadian for the account of the Bank of Canada, have indicated less use of cash in response to the COVID-19, only 12 % reported having been previously denied a merchant to pay for purchases in cash, and almost half (42 %) said not having seen or heard of shops where one refuses cash.

Trend

That is not to say that the transition to the modes of electronic payment is not securely engaged, 36 % of Canadians reporting having used cash during the week preceding the survey, almost as much as the rate of use of Interac email money transfers (38 %), but less than that of debit cards (52 %) and credit cards (62 %). The mobile apps (8 %) and prepaid cards (11 %) were found to be more marginal. The proportion of respondents saying they hold no cash jumped to 20 %, due 2019, at 28 %, this year.

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