Suitcases of cash added to the mountains of loo paper and canned goods

It wasn't just loo paper that was hoarded as the coronavirus spread. The RBA says people started stockpiling cash.

9/04/2020 9:05:00 AM

Australians did not just hoard loo paper and tinned tomatoes as the coronavirus pandemic spread through the country last month - they started stockpiling cash | swrighteconomy

It wasn't just loo paper that was hoarded as the coronavirus spread. The RBA says people started stockpiling cash.

Very large text sizeAustralians did not just hoard loo paper and tinned tomatoes as the coronavirus pandemic spread through the country last month – they started stockpiling cash.The Reserve Bank of Australia, in its six-monthly review of the health of the financial system released on Thursday, noted some extraordinary behaviour by people at the nation's banks.

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Australians responded to the coronavirus pandemic by hoarding loo paper, tinned tomatoes and cash.Credit:AlamyAs occurred during the depths of the global financial crisis, people raced into their banks to withdraw cash. Some people with large balances withdrew huge sums of money.

"This included a small number of customers making very large withdrawals (more than $100,000 and in some cases into the millions of dollars)," the RBA noted.Advertisement"The Reserve Bank worked closely with the large banks and cash-in-transit companies to ensure branches had sufficient cash supplies. The elevated demand has since abated."

LoadingThe RBA said the coronavirus outbreak had put pressure on the entire financial system but it was holding up well."The regulatory authorities have been working closely together to minimise the economic harm caused by the pandemic, to avoid the impairment of household and business balance sheets and to support financial market functioning," it said.

"These measures, along with the strong starting position of the banking system, increase the financial system's ability to absorb, rather than amplify, the effects of the pandemic."The RBA noted the various closures aimed at stopping the spread of the coronavirus would hit the business sector, with credit quality across a range of loans likely to deteriorate.

It said businesses had gone into the pandemic with solid balance sheets and a strong ability to service debts because of falling interest rates."However, the adverse shock to business conditions is already large and expected to grow substantially," it said.

"Fiscal and banking support will help businesses, but many will struggle. Revenues for many firms servicing the household sector – including those in the retail trade, food and accommodation services, and tourism industries – have dried up."Some firms have already closed, at least temporarily.

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."LoadingSeparate figures from the Australian Financial Security Authority, released on Thursday, show a lift in the number of personal insolvencies over the past week.In the week to the end of April 5, the authority recorded 1019 personal insolvency claims. This is 21 per cent higher than the weekly average.

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swrighteconomy They really should have been hoarding bitcoin instead. swrighteconomy Getting ready for the depression swrighteconomy Idiots. You ever heard of Greece swrighteconomy A bit dangerous leaving it at home 🏠 swrighteconomy Have any of these people ever seen dystopian movies? Cash is useless once society collapses.

swrighteconomy Which is ironic because nobody accepts cash these days swrighteconomy Really? There is heaps of cash being printed as I type this. Trillions in fact. No shortage of cash that's for sure. Try buying a silver coin though - harder to get than toilet paper. swrighteconomy swrighteconomy For use as toilet paper?

swrighteconomy 'along with the strong starting position of the banking system, increase the financial system's ability to absorb, rather than amplify, the effects of the pandemic.' How many showers did you have to take upon typing that steaming load of hot diarrhea into existence? Shameless swrighteconomy As long as they don’t mix the cash and toilet paper

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Don't add government debt to your list of things to worry aboutIn times of severe national crisis, we need all arms of government to step in with purpose and confidence, which they are doing. Jess_Irvine History of Australian government debt. It's fine.

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