In December 1997, for example, we projected that the exchange rate would remain broadly unchanged at 64.2 on the Trade-Weighted Index and the 90 day interest rate would stay at around 7.6 per cent through the first half of 1998. Well before our March projections were published, the exchange rate had fallen well below 64.2 and interest rates had risen above 7.6 per cent.
We may be approaching a tipping point, where cash is not only losing market share, but may be increasingly disappearing as an option. For most of the population, for most purposes, and for most of the time, this trend is not very problematic. But the payment system is a utility which must be accessible to everybody, not only the majority of people.