Archive for August 31st, 2017

Strange story of East German currency Ostmark: How the notes were buried only to be sold as collectible items later…

August 31, 2017

An oldish post by lulzmoney (HT: JP Koning) but highly relevant as Governments are at a war on cash.

Post Berlin Wall, the currency in East Germany was Eastern Mark or Ostmark. I am leaving the earlier history of its starting etc to the reader and moving straight to 1989 when the wall fell. What then happened to Ostmark is straight out of movies:

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Is this the first time in 2015-16 that Household financial savings are higher than Household Physical Savings?

August 31, 2017

There have been some comments over this RBI Annual Report table which indicates household financial savings being higher than physical savings. The idea is that thanks to several government measures we are seeing people moving towards financial savings over physical savings.

One just dug out the savings data from 1950-51 onwards and we see quite a few times this has happened. I have highlighted those years in Red. First time we see fin savings higher than physical ones is 1981-82 which continues till 1986-87 barring one year in the middle. Then we see from 1991-92 to 1998-99. Then there is just one year in 207-08 where this happens on the hype of 9% growth. Will have to figure the reasons for other years.

Year Financial Savings Physical Savings
1950-51 0.6 6.2
1951-52 0.1 6.2
1952-53 0.7 6.2
1953-54 1.4 5.3
1954-55 2.8 4.9
1955-56 4.3 6.1
1956-57 3.3 8.9
1957-58 2.9 7.4
1958-59 3.6 6.2
1959-60 4.3 8.3
1960-61 4.6 7.7
1961-62 4.9 7.5
1962-63 5.0 10.2
1963-64 7.4 8.5
1964-65 7.1 11.8
1965-66 10.7 15.2
1966-67 8.6 23.0
1967-68 8.7 24.1
1968-69 8.0 24.8
1969-70 9.2 34.6
1970-71 13.7 31.6
1971-72 15.6 36.7
1972-73 21.3 32.0
1973-74 36.1 44.1
1974-75 23.7 63.0
1975-76 39.2 58.7
1976-77 48.5 63.5
1977-78 58.5 78.3
1978-79 66.6 98.2
1979-80 60.8 102.6
1980-81 86.1 95.1
1981-82    96.1 94.0
1982-83    127.4 92.3
1983-84 132.9 136.6
1984-85    178.8 149.2
1985-86    185.4 181.3
1986-87    233.4 187.8
1987-88 268.2 304.8
1988-89 271.8 398.8
1989-90 380.0 449.9
1990-91 496.4 589.6
1991-92    621.0 435.3
1992-93    653.7 625.8
1993-94    947.4 567.2
1994-95    1207.3 664.1
1995-96    1057.2 928.7
1996-97    1416.6 829.9
1997-98    1467.8 1373.5
1998-99    1803.5 1717.7
1999-00 2066.0 2322.5
2000-01 2152.2 2485.3
2001-02 2474.8 2978.1
2002-03 2532.6 3109.1
2003-04 3132.6 3443.3
2004-05 3279.6 4357.3
2005-06 4383.3 4306.6
2006-07 4842.6 5101.4
2007-08    5802.1 5381.4
2008-09 5710.3 7598.5
2009-10 7747.5 8560.5
2010-11 7738.6 10263.2
2011-12 6322.0 14225.4
2012-13 7171.3 14952.8

Infact RBI Annual report table is for 2015-16 which have already been given earlier. It is not really new data:

From 2011-12, it has changed the style of reporting this data. It looks like as shown in the RBI Annual Report table. The figures are:

Gross financial saving Less financial liabilities Saving in physical assets Saving in the form of gold & silver ornaments
2011-12 9327.29 2901.2 13893.22 336.35
2012-13 10640.41 3304.25 14650.13 366.5
2013-14 11907.7 3586.79 14164.28 367.82
2014-15 12826.33 3633.85 15908.74 455.62
2015-16 15142.07 4317.55 14951.5 439.3

Infact if we add Gold and Silver to Physical Savings, the share of Physical Savings remains higher than Financial savings even in 2015-16.

We have seen in the past that if overall global financial environment goes for a toss, people switch back to physical savings. What will happen this time around is there to be seen…

How high is RBI’s expenditure on printing of notes in 2016-17?

August 31, 2017

When RBI announced that surplus transferred to government is Rs 30659 Cr less than Rs 65876 cr, all hopes of a government bonanza from demon were dashed. But back then we knew one major item which would have led to this decline is cost of printing notes which was expected to rise given the scale of remonetisation.

Y’day Annual report released the income and expenditure figures:

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