Demand for banknotes grew substantially over the COVID-19 pandemic period in many advanced economies. In Australia, the value of banknotes in circulation increased by 22 per cent, or $19 billion, between March 2020 and its peak in December 2022. This followed a period of already-strong banknote demand; in the decade prior to the pandemic, banknote demand was growing faster than GDP (Flannigan and Parsons 2018; Flannigan and Staib 2017). Banknote demand has since declined but remains close to its historical high. This strength, relative to growth in prices and the economy, is despite the ongoing decline in the use of ... (full story)