Reserve Bank Seeks Public Input on Cash Usage and Access

The Reserve Bank of New Zealand is conducting a survey to gather insights on how the public uses and manages cash. This initiative aims to obtain up-to-date information as the bank plans to redesign the nation’s cash system. The survey, which will now be conducted annually instead of biennially, targets various aspects of cash usage, including preferences for payment methods, frequency of cash transactions, and ease of depositing and withdrawing notes and coins.

According to Ian Woolford, the Reserve Bank’s Director of Money and Cash, “As the steward of money and cash for New Zealand, we need to ensure that New Zealanders can access, use, and bank cash.” The survey is designed to address new questions regarding potential challenges individuals may face when using cash, reflecting the evolving landscape of payment methods.

Changing Trends in Cash Usage

The relevance of cash in everyday transactions is diminishing, with reports indicating that it constitutes less than 10 percent of all payments. Carolyn Young, Chief Executive of Retail New Zealand, emphasized during an interview that while some consumers rarely use cash, it remains crucial in specific circumstances. “In rural areas versus urban areas, there is more cash that goes through transactions,” she noted. Additionally, cash serves as an effective budgeting tool for individuals on tight financial constraints.

Young highlighted the significance of cash during emergencies, particularly when electronic payment systems fail. She pointed out that hospitality businesses are more likely to stop accepting cash compared to retailers. “The Reserve Bank’s perspective is you don’t have to take cash, but you have to have an alternative method if somebody can’t pay by a card,” she explained.

In response to the shifting cash landscape, New Zealand First has proposed a members’ bill aimed at protecting cash transactions. This bill would require retailers to accept cash payments for purchases up to $500. While acknowledging the importance of cash, Young conveyed that retailers generally do not support making cash acceptance mandatory. Concerns about robbery and counterfeit notes are prevalent among businesses that handle cash.

Survey Participation and Verification

The Reserve Bank’s survey is open until October 10, 2023. Individuals who receive an invitation to participate can verify its legitimacy by visiting the Reserve Bank’s official website or contacting them directly via email at [email protected] or by phone at +64 4 472 2029. This initiative underscores the bank’s commitment to adapting to the changing preferences of New Zealanders regarding cash and ensuring their ongoing access to this form of payment.