Canada is running out of $50 bills because people are hoarding them

The Bank of Canada told CTV News that the shortage won’t impact the consumer’s ability to withdraw cash but it may require banks to alter their cash orders. 

“We still have $50 bank notes in stock, but the order adjustments were made in order to maintain adequate inventories throughout the next few weeks,” the Bank told CTV News.

“This adjustment is due to the larger-than-expected demand over the past few months, and ahead of our regularly scheduled stock replenishment expected by the end of summer. This measure, which only affects the $50 denomination, is temporary and will be lifted as soon as possible.”

The Bank of Canada didn’t say why demand has increased for the $50 note specifically, but a July staff discussion reveals that there was an overall spike in demand for cash in April and May compared to the last five years.

July report flags three reasons for the increase in notes in circulation:

  • precautionary steps by banks to increase their cash inventories;
  • reduced cash deposits from retailers to banks, which banks compensated for by drawing cash from the Bank of Canada;
  • increased consumer demand for cash

The report cites the increase in consumer demand as a “significant” factor and it indicates that Canadians are holding on to an extra $22 in cash during the pandemic.

Basically, Canadians are still taking out plenty of cash — but they’re not spending it at the same rate.

Notably, the report also indicates that more than one-third of Canadians (36 per cent) are still using cash, despite the fact that many major clothing stores, restaurants and liquor stores are switching to cashless payments.

Post a comment or leave a trackback: Trackback URL.

Comments

  • kamtanblog  On July 31, 2020 at 3:59 am

    Toilet paper hoarding ?
    Doubt it !
    With USA UK EU printing presses operating 24/7 burying gold is a better option.
    Today metal detectors are still finding gold coins buried since 55BC occupation of UK. Guyana black gold (oil) will replace its shining brother.
    All that glitters is nah gold !

    Go figure

    Kamtan
    PS TP money is now made of “plastic” …
    Last forever !
    And u can bury safely.
    Does not decompose.
    R CAD plastic ?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: