The Reserve Bank is asking people how they use and store cash, saying it needs more up-to-date information as it redesigns the system.
The random postal survey asks people how they prefer to pay, how often they use cash, how easy it is to deposit and withdraw coins and notes, and whether they store cash and why.
The central bank is asking new questions this year such as whether people are having challenges in using cash.
It will now carry out its survey annually instead of every two years.
“As the steward of money and cash for New Zealand, we need to ensure that New Zealanders can access, use, and bank cash,” the central bank’s director of money and cash Ian Woolford said.
The survey will inform its work to redesign the cash system.
Retail New Zealand chief executive Carolyn Young told Morning Report the use of cash is diminishing to less than 10% of transactions.
While some people never use cash, there were times and places where it was critically important, she said.
“In rural areas versus urban areas there is more cash that goes through transactions.
“And we know intrinsically that people that are on a really tight budget, that cash is a really great tool for managing budgets.”
Young said cash was indispensable in emergency situations when electricty or Eftpos connections go down.
Hospitality businesses were more likely than retailers to no longer take cash, she said.
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“The Reserve Bank 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.”
New Zealand First introduced a Member’s Bill to mandate trade vendors to accept cash payments for goods valued up to $500 – meaning if passed, cash payments would have to be accepted by law.
Young said retailers recognise the importance of cash but don’t back it being compulsory.
There was a risk of robbery for businesses holding cash, and counterfeit notes were common, she said.
The survey runs to October 10. If people receive a letter to voluntarily participate they can check it is legitimate by visiting the Reserve Bank our website, emailing [email protected] or phoning +64 4 472 2029.
rnz.co.nz
