Cash is still king in Poland

Poland is the third EU economy in terms of the popularity of using cash, while the value of notes and coins in circulation has reached PLN 215 bn (EUR 50.6 bn), the Polish “Dziennik Gazeta Prawna” daily reports.

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This share of the value of coins and banknotes in the economy, compared to the GDP is close to 10 percent. This is the third-highest in the EU, only behind Greece and Hungary.

Economists say that the reason why there is so much cash in circulation is the low-interest rates, which discourage people from putting money in banks. Many Poles prefer to keep their savings at home.

Although payments via credit cards and mobile devices are getting more and more popular in Poland, there are still many people who prefer cash payments.

“A significant part of our society are people who pay with cash, so I do not expect a reverse of this trend,” Marcin Mazurek, an mBank economist told “Dziennik Gazeta Prawna.”

At the end of June, around 60 percent of the value of banknotes in the circulation was PLN 100 (EUR 23.5) banknotes, followed by PLN 200 (EUR 47) banknotes. PLN 500 (EUR 117.65) notes, introduced in early 2017 made up only 0.8 percent of the whole number of banknotes, but simultaneously nearly four percent of the total value.

There are a total of nine coins in circulation in Poland, ranging from PLN 0.01 to PLN 5, as well as six banknote denominations – from PLN 10 to PLN 500.