Our article attempts to find an answer to how the cash requirement of the national economy is distributed among the largest cash-using sectors, i.e. corporations and households, and to what extent individual sections of the corporate sector contribute to the sector’s cash demand. The analysis has been made possible by the corporate data sources that have recently become available to the central bank’s statistical service. The data confirm the results of earlier surveys on the correlation between cash holdings and other corporate characteristics, while simultaneously providing a more refined picture of the developments over time of cash-holding. Accordingly, until the mid-2000s the corporate sector held a growing portion of the cash in circulation; firms’ cash holdings constituted an increasing portion of their funds, assets and sales revenues. From 2006, the process reversed, and from this moment on growth of cash in circulation has exclusively taken place in the household sector. New data available also allow a revision of the earlier statistical estimates regarding the holding of cash. The results presented in this article will be published in the financial account statistics in January 2010.corporate cash holdings, cash in circulation, statistical data, cash-using sectors.
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