Cash reserves: Why the Dutch and Swiss need to act now!

Cash reserves: Why the Dutch and Swiss need to act now!

Geopolitical tensions caused by the war between Russia and Ukraine are forcing governments in Europe to make unusual recommendations. The Dutch banks in particular have, for the first time, advised their customers to keep cash at home in case of an emergency. This is happening against the background of alarming developments: consumers must prepare for possible crisis scenarios and their consequences. According to the spokesman for the national banking association NVB, this is seen as a necessary measure to be prepared for unforeseen events, even if this advice goes against the banks' business model. However, the banks themselves are optimistic and do not expect any negative financial consequences from the withdrawals today.at reported.

Cash for emergencies

A similar strategy is being pursued in Switzerland. The federal government also recommends having sufficient cash reserves to cover short-term expenses such as weekly shopping. The mention of cash storage facilities is no coincidence: this measure is also a response to increasing considerations of military readiness and the associated uncertainties. Despite long traditional reserves, many Swiss still keep valuable items such as gold unsecured in their homes, which makes the issue even more urgent. Based on research, most households in Switzerland have limited cash insurance coverage, reinforcing the strong recommendation to take preventive measures such as 20min.ch reported.

A general piece of advice is that every family has enough cash available in small denominations - around 100 euros per family member within the scope of the recommendations. This way, every household can react more easily to unexpected situations. This indicative advice comes in the midst of a social upheaval that is being shaped by the coronavirus pandemic and is now being further intensified by geopolitical unrest. The trend towards cash means of payment is becoming increasingly important in order to remain able to act even if electronic payment systems are disrupted.