Germany accumulates cash to deal with any electricity blackouts. It seems that cash always works…
German authorities are stepping up preparations for the provision of emergency cash in the event of a blackout to keep the economy going, four people involved said, as the nation prepares for possible power outages stemming from the war in Ukraine. as reported by Reuters.
Plans call for the Bundesbank, Germany's central bank, to hoard billions more to cope with a surge in demand and possible limits on withdrawals, said one of the people involved.
Officials and banks are also looking into distribution, such as discussing priority access to fuel for cash carriers, others said, commenting on preparations that have accelerated in recent weeks after Russia cut gas supplies .
The planning discussions involve the central bank, financial markets regulator BaFin and several financial industry associations, the people said, some of whom spoke on condition of anonymity about private and evolving plans.
Although the German authorities have publicly downplayed the likelihood of a blackout, the discussions demonstrate how seriously they take the threat and struggle to prepare for potential crippling power outages caused by rising energy costs or even sabotage.
They also point to the growing ramifications of the war in Ukraine for Germany, which has relied on affordable Russian energy for decades and is now facing double-digit inflation and the threat of disruptions due to fuel shortages. and of energy.
Access to cash is of particular concern to Germans, who value its security and anonymity and who tend to use it more than other Europeans, with some still hoarding deutschmarks replaced by the euro more than two decades ago. Around 60% of everyday purchases are paid for in cash, according to a recent Bundesbank study which found that Germans, on average, withdraw more than €6,600 a year mainly from ATMs.
In Germany, therefore, cash is stockpiled to deal with possible blackouts, and in Italy there is controversy over a limited increase in the usage ceiling. It would be interesting to see what could happen if there were extended blackouts in Italy as well, with people without cash.
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The article Germany hoards cash to deal with possible electricity blackouts. It seems that cash always works… it comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-germania-cumula-contante-per-far-fronte-ad-eventuali-blackout-elettrici-pare-che-il-cash-funzioni-sempre/ on Tue, 15 Nov 2022 11:39:09 +0000.