Did you know that washing machines and sofas may be the "accomplices" of Australian poverty because 8 billion Australian dollars in cash may have been damaged or "devoured".
Although Australians have switched from using cash to swiping cards and digital payment systems in their daily consumption, 76 billion Australian dollars are still doing their job in the Australian economy, the Times reported on November 11. Although people no longer use cash to pay, there is still more cash in circulation.
To that end, Richard Finlay,Andrew Staib and Max Wakefield, (RBA) researchers at the Bank of Australia, hope to find the ultimate fate of the cash. According to a special study recently conducted by the Bank of Australia, 1 / 10 of Australia's issued banknotes have been looted, gobbled down by a curious puppy or simply forgotten.
According to forecasts, only 15% to 35% of cash is performing their duties, allowing Australians to buy goods and services every day. That means at least 65% of the money is doing things other than as a means of exchange.
In addition to 10% to 20% of the cash is held in Australia, 15% of the cash is held overseas. The notoriously hard-to-measure shadow economy accounts for between 4% and 8% of cash. Before the proceeds were converted into assets, between A $40 million and A $100 million of cash were held by drug dealers. The rest of the cash went away.
"this means that between A $4 billion and A $8 billion (about 5 to 10 percent of all banknotes issued) have been lost, damaged, forgotten, or sitting in a coin store." The Bank of Australia research said.
This equates to a loss of A $340 per Australian dollar, most of which is A $5 or A $10. Australia's central bank found that Australians do not care whether the sofa "devoured" 5 Australian dollars in cash. Since the introduction of polymer notes, the life of A $5 and A $10 notes is close to seven years. But since A $100 notes are usually used as a way to accumulate wealth rather than daily consumption and live longer than 200 years, they are less likely to be lost, the report said.