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15th January, 2020

Gov’t measures encourage use of cash

The amount of cash in circulation at the end of 2019 stood at Ft 6.627 trillion, up by 8.3% from the beginning of the year, the MNB announced on Tuesday.

According to figures from the end of September, 79% of the cash was in the hands of households.

The rate of growth in cash in circulation has slowed down since the middle of 2018, Portfolio adds.

The 0.3% financial transaction tax, which is outstandingly high in Europe and discourages the use of bank transfers, promotes the use of cash, Portfolio observes.

In addition, the law provides for two free cash withdrawals from ATMs each month.

Retail outlets are not required to accept bank cards, and the black economy also supports the use of cash, the website adds.

Portfolio notes that low interest rates discourage households from depositing their money in banks.

Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).

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