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Juan 1972
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Readers Ask: Why Not Keep Cash Instead of Parking Euros With the ECB for Negative Returns? - Mish - Global Economic Analysis

By assuring that there are insurance and warehousing costs in deciding to park the euros at the ECB, this answers implies that banks deposit physical cash at the ECB, which is not the case.

Please, try a different answer for everyone to better understand the reasons

Commented 2965 days ago

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Beginning of the headline :In response to Financial Wonderland: Reader Questions on Negative Rates and Money Heaven, several readers asked “Why do banks park funds at the ECB for negative returns instead if simply keeping cash?” That’s a question I meant to answer in the above Financial Wonderland link, but let’s answer it now. The two applicable answers are insurance, and space. It would cost more money for insuring bank vault cash that it costs in negative interest. The insurance reason presumes banks have vaults big e... Read More

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