The Swedish central bank, Sveriges Riksbank, has issued new guidelines advising citizens to keep a minimum amount of cash at home in preparation for potential crises such as war or cyberattacks. The recommendation comes amid heightened security concerns stemming from Russia and, to a lesser extent, the Middle East. According to the guidance, each adult should have at least 1,000 Swedish kronor, approximately $110, available in cash to cover essential expenses for a week, including food, medicine, and other necessities. This advice forms part of broader efforts by the Swedish government to prepare society for possible consequences of military or cyber threats. The recommendations were outlined in a statement from Riksbank officials who emphasized the importance of public preparedness. They noted that access to multiple payment methods increases the ability of individuals to conduct transactions during disruptions, crises, or even wartime scenarios. In addition to keeping cash reserves, citizens are advised to possess bank cards from different issuers and use the local mobile payment service Swish. These measures aim to ensure continued functionality of payment systems in case of temporary disturbances. Swedish authorities have long been concerned about the country's highly digitized payment system, which relies heavily on electronic transactions. Only about 10 percent of transactions are conducted with cash, making the population particularly vulnerable in situations where digital infrastructure might fail. As a result, Riksbank has called for legislation to protect the status of cash, although such a law has yet to be enacted. Similar recommendations have already been made by central banks in Finland and Norway, both of which share borders with Russia and face comparable security challenges. According to Aino Bunge, deputy governor of Riksbank, the recommendation is based on calculations by Sweden’s Consumer Agency regarding typical monthly spending on food. She clarified that while the suggested amount is around 1,000 kronor per adult, individual households should adjust this figure according to their specific needs. Bunge stressed that there was no immediate need for everyone to rush to withdraw cash right away, emphasizing that building readiness over time is more practical than sudden action. Data from Riksbank indicates that slightly more than 40 percent of Swedish households already meet the recommended level of cash reserves. This means nearly six out of ten households would need to increase their cash holdings to reach the advised threshold. However, Bunge cautioned against panic, noting that maintaining emergency funds should be a gradual process rather than an urgent response to current circumstances. In Stockholm, some residents have already begun following the guidance, keeping several thousand kronor in cash at home. Others, however, rely entirely on digital payments and do not maintain any physical currency. Increased demand for cash has already been observed since the beginning of Russia’s invasion of Ukraine in 2022, when many households withdrew unusually large sums. Riksbank further advises citizens to occasionally use cash to keep the physical payment system functional, though it does not specify how frequently this should occur. The bank highlights the importance of having diverse payment options available, including physical cards, mobile payments, and cash, to ensure continued purchasing power during emergencies. The Swedish government has previously distributed informational brochures to every household outlining steps for preparing for crisis situations. These include recommendations on water storage and monitoring news in the event of a power outage. The current initiative builds upon these earlier efforts, reinforcing the idea that individual preparedness contributes significantly to national resilience. Similar measures have been taken by neighboring countries facing similar geopolitical risks. Central banks in Finland and Norway have also advised their citizens to maintain cash reserves and diversify their payment methods. These coordinated actions reflect a growing awareness among Nordic nations of the vulnerabilities associated with high levels of digital dependency and the potential consequences of external threats. As the situation continues to evolve, Riksbank emphasizes the need for ongoing dialogue and adaptation of strategies to address emerging challenges. While the immediate focus remains on ensuring preparedness through accessible financial resources, the long-term goal involves strengthening the overall resilience of the payment system and the economy as a whole.
★
Keep the news honest.
ObjectiveNews is reader-funded and ad-free — we show you the bias instead of hiding it. Support independent journalism for €4/month.
Become a Supporter
Croatia
