00000nam 2200000zi 4500 9.942579 CaOODSP 20240829093854 m o d f cr mn||||||||| 240829t20242024onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng eng fre n-cn--- FB3-5/2024-23E-PDF Xiao, Hongyu, author. Demand for Canadian banknotes from international travel : indirect evidence from the COVID-19 pandemic / by Hongyu Xiao. [Ottawa] : Bank of Canada = Banque du Canada, 2024. ©2024 1 online resource (ii, 42 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-23 ISSN assigned to different series. "Last updated: June 14, 2024." Includes bibliographical references (pages 32-34). "Recent trends suggest that domestic demand alone may not be enough to explain the increase in overall demand for Canadian banknotes (Engert et al., 2019). Estimating foreign cash demand is difficult due to data availability issues and confounding factors that simultaneously affect domestic demand. In this paper, I provide a quantitative causal estimate of banknote demand from international visitors to Canada by exploiting the exogenous shock from COVID-19 international travel restrictions, which led to an unprecedented drop in cross-border travel. To identify international visitor demand shocks from contemporaneous domestic demand shocks due to the pandemic, I apply a difference-in-differences strategy, taking advantage of foreign traveler demand's distinct regional patterns and data from the Bank of Canada's Bank Note Distribution System. I find that each international visitor brought on average $165 worth of hundred-dollar notes with them to Canada prior to the pandemic. Under plausible assumptions, total holdings by international visitors constitute roughly 10% of total $100 CAD notes in circulation at the end of 2019"--Abstract, page ii. Includes abstracts in English and French. Demand for money Canada Econometric models. Visitors, Foreign Canada Finance, Personal Econometric models. Travel restrictions Canada Econometric models. Monnaie Demande Canada Modèles économétriques. Visiteurs étrangers Canada Finances personnelles Modèles économétriques. Circulation internationale des personnes Restrictions Canada Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2024-23. (CaOODSP)9.806221 PDF 2.08 MB https://publications.gc.ca/collections/collection_2024/banque-bank-canada/FB3-5-2024-23-eng.pdf