These developments include the rapid growth, in real terms, of the global economy; an increase in the ratio of financial assets to GDP; increases in corporate holdings of cash; growth in many of the major "real-money accounts," such as pension funds, central bank reserves, and sovereign wealth funds; the ongoing reinvestment of fixed-income assets that come to maturity; and the payouts that occur when firms are acquired.
Physical cash in circulation for the U.S. dollar continues to rise because of robust demand, and the dollar plays an important role globally. We have a robust and diverse banking system that provides important services, along with a widely available and expanding variety of digital payment options.