More cash changed hands in April, as people made large withdrawals out of uncertainty

[webfact]

More cash changed hands in April, as people made large withdrawals out of uncertainty

By The Nation

 

 

The amount of cash circulated in the economy was far higher than expected during the height of Covid-19 outbreak because many consumers had a lot of cash in hand due to the unpredictable situation wrought by the virus and lockdown restrictions. 

 

Cash circulation in April surged to an all-time high at Bt2.1 trillion or up 13.3 per cent, even though conditions were tough in March and April as the government told businesses to stop operating temporarily and closed the country to foreigners.

 

In response to these changes, consumers decided to hold more cash than usual, resulting in Bt1.6 trillion worth of Bt1,000 banknotes being used or 8.4 per cent more than the Bt1.5 trillion worth used in April last year. They also used 23.3 per cent more Bt500 banknotes worth Bt190.5 billion, up from Bt154.7 billion in April 2019. 

 

Somboon Chitphentom, the Bank of Thailand’s assistant governor, said people withdrew large amounts of money in April as the crisis hit acute levels and the government put the country under state of emergency. Many venues were closed, and Thailand’s borders were sealed off. 

 

These factors created uncertainty, leading consumers to hold more cash, he noted. They began withdrawing large amounts in the last week of March and continued to do so until mid-April, he said. 

 

The government’s financial aid for affected people also contributed an increase in the circulation of cash in the economy, as the first batch of cash was distributed in April, leading to Bt64.5 billion being withdrawn from banks. 

 

Now that the government has lifted most lockdown restrictions, the withdrawal of cash has returned to normal, Somboon said. 

 

He also believes that people will use more digital money in the post-Covid new normal, especially since online transactions have become so easy and more widespread.

 

Source: https://www.nationthailand.com/business/30389806

 

-- © Copyright The Nation Thailand 2020-06-18

 

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[tonray]

I've noticed the Gold shops, which are usually empty most of the day now have queues of people lining up...I'm guessing to convert their 'safe' stash to real cash.

[smedly]

That is quite worrying

[scubascuba3]

I'm surprised the increase was that low, i would have expected 100%+, maybe people didn't realise the risk to the banks around that time

[Krataiboy]

An illustration, if one were needed, of the necessity of resisting attempts to push us into a cashless society, with all money digitalised and controlled by banks and governments.

[Mr Meeseeks]

24 minutes ago, Krataiboy said:

An illustration, if one were needed, of the necessity of resisting attempts to push us into a cashless society, with all money digitalised and controlled by banks and governments.

A cashless society is fine, as long as the digital money is not centrally controlled by banks or the government. 

 

The issues as you rightly state are trust and governance. 

 

A digital currency that can scale to meet demand, offers cheap and quick transactions and has a decentralised system of governance is needed.

 

Bitcoin cannot meet these requirements, and in many ways is now under centralised control of a few core developers, but it will be an important store of value now and in the future. 

Edited June 18, 2020 by Mr Meeseeks

[CGW]

9 minutes ago, Mr Meeseeks said:

The issues as you rightly state are trust and governance. 

No need to go any further - cash please as I have close to zero trust in "governance" as evidenced by the ongoing "agenda"

[dick turpin]

Did my bumper baht withdrawal way back in March...wry smile from

the lady behind the counter, she knew exactly what my game was.

[yourauntbob]

On 6/18/2020 at 3:58 AM, Mr Meeseeks said:

A cashless society is fine, as long as the digital money is not centrally controlled by banks or the government. 

 

The odds that governments world wide would not interfere with a digital currency, even one created outside of them, is a pipe dream.  As soon as one took hold they would regulate it until it was monopolized by the state.  

 

"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild