Discussion paper

DP8065 Immigration and large banknotes

Do immigrants have a higher demand for large denominated banknotes than natives? This micro study examines whether banknote orders for CHF 1,000 notes, a banknote used for storage purposes, is concentrated in Swiss municipalities with a high foreign-to-native ratio. The evidence for 251 Swiss municipalities finds that immigrants hoard fewer CHF 1,000 banknotes than natives. This result means that immigration reduces seigniorage (per person) as measured by banknote orders. A 1% increase in the immigrant-to-native ratio is coincident with a reduction in banknote orders by CHF 4,000. This reduction is attributed to wealth and age e ects linked to immigrants.


Fischer, A (2010), ‘DP8065 Immigration and large banknotes‘, CEPR Discussion Paper No. 8065. CEPR Press, Paris & London. https://cepr.org/publications/dp8065