{"id":39759,"date":"2018-10-27T07:20:44","date_gmt":"2018-10-27T12:20:44","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39759"},"modified":"2018-10-27T07:20:44","modified_gmt":"2018-10-27T12:20:44","slug":"swedish-central-bank-makes-u-turn-on-cash-as-nirp-is-ending","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39759","title":{"rendered":"Swedish Central Bank Makes U-Turn on Cash as NIRP is Ending"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"https:\/\/wolfstreet.com\/2018\/10\/26\/nirp-fades-swedens-central-bank-makes-u-turn-on-cashless-society\/\">Swedish Central Bank Makes U-Turn on Cash as NIRP is Ending<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>Cash is less of a threat to central bank policies when\u00a0interest rates rise above zero.<\/strong><\/p>\n<p>Sweden\u2019s Riksbank has become the first central bank in the 21st century to take concrete measures to ensure that cash does not disappear as a means of payment from the financial system. To that end, the Riksbank proposes, in a <a href=\"https:\/\/www.riksbank.se\/globalassets\/media\/remisser\/riksbankens-remissvar\/engelska\/2018\/consultation-response-on-secure-access-to-cash.pdf\">document published on its website<\/a>, to make it mandatory for all banks and financial institutions to offer cash services.<\/p>\n<p>The pronouncement comes in response to a recent policy suggestion by the Riksbank Committee that only the country\u2019s six major banks should be obligated to continue offering cash services.<\/p>\n<p>That prompted a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-10-22\/swedish-atm-operator-says-cash-provision-is-state-responsibility\">backlash<\/a> from Sweden\u2019s competition watchdog, which argued that the plan would distort competition as it would affect only a few of the nation\u2019s banks. In response, the Riksbank has opted to apply the rule to \u201call banks and other credit institutions that offer payment accounts.\u201d<\/p>\n<p><ins class=\"adsbygoogle\" data-ad-client=\"ca-pub-8212587530282873\" data-ad-slot=\"1767955946\"><\/ins>There was also a difference of opinion between the Riksbank Committee and the central bank\u2019s senior management on the issue of deposit facilities. While the Committee recommended that banks should only be obligated to provide deposit facilities to businesses, the Riksbank believes it is important for banks to also offer deposit services to individual citizens:<\/p>\n<blockquote><p>\u201cThis is a service that consumers can reasonably expect of credit institutions. There must also be symmetry between withdrawal and deposit facilities. In the Riksbank\u2019s view, there is otherwise a risk that the possibilities for individuals to make deposits will decrease even further in the future. For most consumers, it would also be difficult to understand why they can withdraw cash from an account but not make deposits.\u201d<\/p><\/blockquote>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Swedish Central Bank Makes U-Turn on Cash as NIRP is Ending Cash is less of a threat to central bank policies when\u00a0interest rates rise above zero. Sweden\u2019s Riksbank has become the first central bank in the 21st century to take concrete measures to ensure that cash does not disappear as a means of payment from [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,6],"tags":[1035,5660,431,534,1768,1389,5432,3471,771,19018,4255],"class_list":["post-39759","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-cash","tag-don-quijones","tag-interest-rates","tag-monetary-policy","tag-negative-interest-rate-policy","tag-nirp","tag-physical-cash","tag-riksbank","tag-sweden","tag-swedish-central-bank","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39759"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39759\/revisions"}],"predecessor-version":[{"id":39760,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39759\/revisions\/39760"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}