Cash In Circulation: Useful or a Blind Alley?

Economists, including those at central banks, and academics track, analyse and use cash in circulation (CIC) data extensively. What does it tell them and is it really useful for ‘cash stakeholders’ (anybody working to provide, manage and circulate cash)?

Cash stakeholders from central banks to suppliers need to understand what is happening to CIC in their own countries, in neighbouring countries and in countries that are similar, even if not geographically close. Overlayed with other data, whether counterfeiting analysis, cash velocity data, changes in GDP or the availability of ATMs, CIC allows stakeholders to start to understand what is happening.

CIC data reveals changing trends over time and allows good questions to be asked early (see page 2 for the article written by the CPT Group which is based on CIC analysis as an example of this).