Should you be adding cash to your emergency kit?

Ruth Nicol

New Zealand Listener·

5 Jan, 2026 06:02 PM3 mins to read

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The importance of having cash during emergencies is becoming such an issue that several European countries now recommend keeping €70-100 (NZ$140-200) per household member in case of emergencies, or enough to pay for essentials for 72 hours. Photo / Getty Images

From cyclones and tsunamis to software glitches, our dependence on cables can bring everything to a shuddering halt. Where is Plan B? In Part II of her feature on what’s at risk if the internet fails, Ruth Nicol on the necessity for cold, hard cash.

In
an earthquake- and storm-prone country, Kiwis are urged to put together at least a rudimentary emergency kit, with water, cans of food, a battery-operated radio and possibly a power bank to charge devices. But we may not necessarily have thought about including cash – preferably in a range of denominations and including some coins.

As Cyclone Gabrielle showed in February 2023, once the internet goes down cash becomes king. With no internet and – as happened during and after the cyclone – no power, Eftpos cards and phone apps no longer work. Nor do ATM machines.

Although the ATMs in Tairāwhiti did eventually start working again, they soon ran out of cash, and with road access into the region cut due to the loss of so many bridges, the Reserve Bank arranged to fly in $41 million of cash to restock them.

The importance of having cash during emergencies is becoming such an issue that several European countries now recommend keeping €70-100 (NZ$140-200) per household member in case of emergencies, or enough to pay for essentials for 72 hours.

Cash may seem a quaint concept these days when most retail transactions are done using a card or a phone app. But according to Ian Woolford, the Reserve Bank’s director of money and cash, many people still use hard currency and they certainly want to have access to it when they need it.

“We get overwhelming feedback from the public about how much they care about cash.”

The bank’s 2023 research found 80% of adults used cash sometimes, 57% used it for everyday items and 8% relied on it.

But even when all infrastructure is working, getting cash is becoming more difficult as banks close branches and remove ATM machines. Woolford says about a third of cash withdrawals are now made in shops.

For businesses, finding somewhere to deposit the cash they take in is also becoming more difficult. Woolford says the problem of where to store cash became an issue during Gabrielle when so much more of it was circulating in affected areas. “Historically, banks would have had their own safes, but one of the problems in Gabrielle was that as cash started to accumulate there was nowhere to store it because banks had decommissioned branches with the vaults.”

The Reserve Bank has been exploring ways to make cash more accessible and in November it launched a 12-month community cash-depot trial in the central Hawke’s Bay town of Waipukurau. Approved businesses and community groups can use the depot to withdraw and deposit cash, and make change in low denominations, free of fees.

In a statement released with the cash depot’s launch, Woolford said the bank was also looking at ways to expand access to cash nationally. One option was a voluntary commitment from banks to maintain a minimum level of cash services.

He says discussions with banks are expected soon, but the Reserve Bank may use its regulatory powers if needed. “The public expect banks to provide cash services to them.”

To read Part I of No Plan B? go here.

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