As a result, it was only over the past three or so years that Australian interest rates lost their significant premium over US rates (Diagram 2). 1  For example, the US dollar in 1989, the Japanese Yen in 1995, in a strengthening direction, and then in 1998 in a weakening direction.
But the only cash cycle that households will trust in is a safe one. Trust is particularly important in times of crisis. Cash is naturally immune to power outages, failing payment systems or even large-scale cyberattacks. We observe sharp spikes in cash demand in regions affected, for example, by earthquakes or hurricanes.