Is the Reserve Bank Governor Intentionally Misleading Parliament?
Adrian Orr: "Physical cash is being used less and less"...but is it?
The Reserve Bank and Adrian Orr’s office were asked for comment on this story. Their response below.
Chairman of the Finance and Expenditure Select Committee, Stuart Smith (Nat), was asked for comment, but has not responded.
Opposition Finance Spokeswoman and Committee member, Barbara Edmonds (Lab) was asked for comment, but has not responded.
The office of Minister of Finance, Nicola Willis (Nat), was asked for comment, but have not responded.
On Monday 12 February 2024 the Governor of the Reserve Bank of New Zealand Adrian Orr stated to the Finance and Expenditure Select Committee that
“Physical cash is being used less and less, so we’re going to have less cash but not be cashless.”
Yet facts from the Reserve Bank’s own balance sheet shows Orr’s statement is false.
Physical cash is not “being used less and less”.
In fact the opposite is true. Physical cash is being used more and more.
Surely Orr must know this. There is after all no-one more responsible for the Reserve Bank’s balance sheet than its Governor.
Is Orr not familiar with his own balance sheet? If not, why not?
Alternatively, Orr is misleading Parliament, deliberately or not. Either way an explanation is required.
It can only be one or the other. There is no alternative.
Why would Orr mislead parliament about the use of cash, saying it was declining when in fact its use is increasing? Something to do with a secret agenda to eliminate cash completely (the secret) and introduce a Central Bank Digital Currency (not secret) perhaps?
Pure speculation of course. Orr does say the opposite.
So far it would appear:
The Governor of the Reserve Bank, Adrian Orr, is at best misleading parliament, or indulging in sophistry. At worst he is intentionally pushing propaganda at parliament. Propaganda is of course a synonym for lying. The reader will decide whether to accept the RBNZ response, or not (below1).
The Chairman of the select committee, Stuart Smith M.P. (Nat), is not concerned that the Governor of the Reserve Bank may be misleading his committee.
The opposition finance spokeswoman and committee member, Barbara Edmonds M.P. (Lab), is not concerned Governor Orr may be misleading her.
The Minister of Finance, Nicola Willis, is not concerned the Governor of the Reserve Bank may be misleading the Finance and Expenditure Select Committee.
Is New Zealand really in good hands, when no-one supposedly in authority cares that they may be being intentionally mislead by the Governor of the Reserve Bank, Adrian Orr, the same man who mocks New Zealanders by saying
“It a great business to be in, central banking. We print money and people believe it.” - Adrian Orr, RBNZ Governor, 12 February 2024
Response from RBNZ.
This was a reference to our Future of Cash work which has found that the way people in New Zealand pay for things is changing. People are not using cash as much as they used to as digital payments have become more common.
Please see here for further information:
How much of that currency in circulation is actually physical cash. I've seen articles which indicate that it's only around 3-4% whereas 30 years ago it might have been 15-20%.
I don't want CBDCs anymore than you do but physical cash has been declining for a while & covid gave it extra impetus. Our retail sales which used to be between 30-40% cash are now lucky to get past 10%.