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$90 billion 'missing': UK banknotes disappear

Blindfolded businessman trying to catch dollar bills.
$90 billion 'missing': UK banknotes disappear. Source: Getty

Around £50 billion (AU$90.5 billion) in UK banknotes has gone missing, and no one knows where it’s gone, UK lawmakers have revealed.

The money is reportedly stashed somewhere, but the Bank of England simply doesn’t know who has it, where it’s gone or what it’s being used for, the chair of the House of Commons Public Accounts Committee (PAC), Meg Hiller said in a statement.

The PAC is concerned about the rise in cash withdrawals, considering the use of cash has been declining in Britain.

"It needs to be more concerned about where the missing £50 billion is," Hiller said.

However, the Bank of England said it’s simply not its business.

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“Members of the public do not have to explain to the Bank why they wish to hold banknotes,” a spokesperson for the bank said.

“This means that banknotes are not missing.”

The number of notes in circulation in Britain reached a record high of 4.4 billion in July, according to CNN, with a total value of £76.5 billion (AU$138 billion).

The Bank of England estimates around 20 to 24 per cent of the notes in circulation are used for cash transactions, with a further 5 per cent used as household savings.

Little is known about the remainder, which is worth around £50 billion, the National Audit Office stated.

“Possible explanations include holdings overseas for transactions or savings and possibly holdings in the UK of unreported domestic savings or for use in the shadow economy,” it stated.

Aussies hoarding cash

In Australia, we’re seeing a similar phenomenon, with Aussies hoarding cash as the economy tanks.

In its annual report, the Reserve Bank of Australia revealed the around $7.7 billion worth of high-denomination banknotes were purchased by commercial banks to meet rising public demand amid the pandemic.

The $50 and $100 notes equated to more than 8 per cent of the total value of banknotes in circulation.

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