Cash reserves: Why Dutch and Swiss have to act now!

Cash reserves: Why Dutch and Swiss have to act now!

The geopolitical tensions due to the war between Russia and Ukraine force governments in Europe to unusual recommendations. The Dutch banks in particular advised their customers to keep cash for emergency at home for the first time. This happens against the background of an alarming development: consumers have to prepare for possible crisis scenarios and their consequences. According to the spokesman for the National Banking Association NVB, this is regarded as a necessary measure in order to be prepared for unforeseen events, even if this advice runs counter to the business model of the banks. However, the banks themselves are optimistic and do not expect negative financial consequences through the withdrawals, such as Today.at reports.

cash for emergency

A similar strategy is pursued in Switzerland. Here, the federal government also recommends having enough cash reserves in order to be able to cover short -term expenses such as a weekly shopping. The mention of cash stores is no coincidence: This measure is also an answer to the increasing considerations about the military willingness and the associated uncertainties. Despite long traditional reserves, many Swiss still keep valuable objects such as gold in their apartments, which makes the topic even more pressing. Based on investigations, most households in Switzerland have only limited insurance protection for cash, which increases the urgent recommendation to take preventive measures, such as 20min.ch reported.

A general advice is that each family has sufficient cash in small bills - as part of the recommendations, around 100 euros per family member. In this way, every household can react more easily to unexpected situations. These indicating advice are in the middle of a social upheaval that is shaped by Corona pandemic and is now further reinforced by geopolitical unrest. The trend towards cash means of payment is becoming increasingly important in order to remain capable of acting even in the event of disorders of electronic payment systems.