Keep Calm and Carry Cash, Says ECB

Households should keep some cash at home so they can pay for essentials during crises, according to an analysis of four major disruptive events in Europe, including the pandemic and Russia’s invasion of Ukraine in 2022.

Consumer demand for banknotes surged in Europe during each of a string of crises, the research, published by the European Central Bank, showed. Physical currency offers ‘distinct psychological and practical utility,’ says the study, whose title urges the public to ‘keep calm and carry cash.’

The findings support the growing recognition among authorities that cash is ‘a critical component of national crisis preparedness.’ For example, authorities in the Netherlands, Austria and Finland recommend that households keep between about €70 and €100 per person at home, or enough to cover essential needs for around 72 hours.

In Sweden, the recommendation is to hold enough cash to pay for things like food, medicines and fuel for at least a week.