The bank is consulting on how to improve the cash system
The cash system requires deliberate changes to keep it resilient and efficient while needed and wanted by New Zealanders, according to Reserve Bank of New Zealand’s latest survey.
According to a 2021 survey, nearly two-thirds of Kiwis were using cash to pay for everyday things, compared to nearly all of New Zealanders in both 2017 and 2019.
“While the proportion of New Zealanders who appear to rely on cash remains steady at about 6%, over the last six years there’s been a significant drop in those of us who sometimes pay with cash, from 96% to 63% of those surveyed,” said Ian Woolford, head of money and cash. “As in previous years, these people are more likely to be older, poorer, living rurally, or Māori.”
The survey also revealed that it is increasingly important for many Kiwis to have some cash stored away during times of uncertainty, with the percentage of Kiwis doing so rising from 37% to 46% from 2017 to 2021.
“Our latest survey suggests cash users are finding it more difficult to find places to deposit cash, while ATMs and supermarkets are the main source of withdrawals,” Woolford said. “Having cash available, accepted in store, and readily deposited are key to both well-functioning local economies and communities where everyone is included. Closing bank branches, fewer ATMs, and reduced or removed cash services offered by banks contribute to falling use and difficulties.”
RBNZ is currently consulting on ways to improve the cash system and support cash use and acceptance.
“We encourage people to review our Cash System Redesign consultation paper, and will welcome all points of view,” Woolford said. “The consultation paper was published last November and closes for submissions next Monday, March 7, 2022.”
