Financial repression in France

France is going to impose even more restrictions on cash payments, for example Stated French Finance Minister Michel Sapin earlier this month. From September, the maximum amount that French people can pay in cash will be reduced from €3,000 to €1,000, while the limit for foreigners will be reduced from €15,000 to €10,000.

According to Sapin, the measures are necessary to combat terrorism and money laundering. Every time someone withdraws more than €10,000 in cash in one month, this must be reported to the Tracfin organization, which is involved in combating fraud and money laundering, from September onwards.

Savers who want to exchange cash in euros for a foreign currency are also limited in their options. Until recently, you could exchange a maximum of €8,000 in cash for a foreign currency without showing an ID, but from September it will be no more than €1,000.

Financial repression

Terrorism is once again being used as a cover for another phenomenon known as financial repression. It is the course that central banks and governments have chosen to get us through this crisis. Savers pay the bill in the form of extremely low interest rates and also run the risk of being taxed when a bank fails, the so-called Bail-in construction. The next step is to discourage the use and possession of cash, because governments and banks have less control over it.

In many cases, large payments are settled digitally, without the intervention of a large amount of cash. Of course, this has advantages in terms of ease of use and security, but it is not completely anonymous. To discourage the use of cash, banks impose a limit. It also happens often enough that a bank (also in the Netherlands) asks what you are going to use the money for when you receive a large amount. Of course, you don't have to answer that. At Hollandgold Buy gold and Buy silver with cash possible up to an amount of €15,000. For purchases of more than €10,000, a legal identification requirement applies.