The Reserve Bank of Australia has been hit with about 100 claims worth almost $10 million for banknotes destroyed due to flooding across southern-Queensland and northern NSW earlier this year.
The Reserve Bank of Australia has received about 100 claims worth almost $10 million to replace banknotes damaged or destroyed due to flooding across southern Queensland and northern NSW earlier this year.
Businesses and households looking to swap out their soppy money made up about two-thirds of damaged banknote returns. Damaged notes are checked for authenticity and then destroyed. Money laundering: Reserve Bank staff washing notes damaged during the flooding, so they can be counted before they are destroyed.Despite cash playing an increasingly smaller role in the economy, the value of banknotes in circulation surged past $100 billion for the first time last financial year, while the number of notes settled at just under 2 billion.
“The growth in banknote demand was mostly driven by the higher denominations, highlighting a desire to hold cash for precautionary or store-of-wealth purposes,” the Reserve Bank’s annual report out this week said.The number of $50 and $100 bills on issue increased by 25 per cent since the start of the coronavirus pandemic following a long-term trend of households stashing away cash during turbulent economic times.