Cash: more demands, less spending

Cash was increasingly in demand in Canada in 2021, even as fewer Canadians use it for spending, according to a Bank of Canada report released Wednesday.

In 2021, Canadians used banknotes and coins to make 22% of their payments, a figure well below the levels of 2017 (33%) and 2009 (54%), according to the results of the survey on payment methods.
A quarter of respondents also indicated that they had no cash in their wallet.
Demand for cash, however, increased over the same period, as Canadians reported having an average of $127 in cash on them, up from $106 in 2017.
Bills of $20, $50 or even $100 were favored in 2021 while those of $5 were increasingly put aside, suggesting that cash is now hoarded, more than used for expenses.
“Pandemic-related uncertainty has increased demand for cash beyond the level of steady growth seen over the past few decades,” the Bank of Canada explained in its report.
Remember that the Bank of Canada is responsible for the circulation of banknotes in the country.