Households in Luxembourg and across Europe are being urged to keep cash at home for emergencies, after a European Central Bank study found demand for physical money surges in times of crisis.

A new study from the European Central Bank (ECB) highlights the crucial role of cash during crises, urging households across Europe to maintain emergency savings in physical currency.

Authorities in several countries, including the Netherlands, Austria, and Finland, already recommend that households keep enough cash on hand to cover basic expenses for up to 72 hours. Suggested amounts range from €70 to €100 per household member. Finland is also testing 'disruption-proof' ATMs to guarantee access to cash in emergencies.

The research shows that when stability is threatened, whether by financial turmoil, war, blackouts, or pandemics, the demand for cash surges sharply, underlining its function as both a reliable store of value and a resilient means of payment.

The ECB examined several recent crises to illustrate this pattern. During the Covid-19 pandemic, households hoarded cash as a precaution against prolonged uncertainty. Russia’s full-scale invasion of Ukraine triggered immediate, localised surges in cash withdrawals near conflict zones, regardless of the level of digitalisation in those countries. The Iberian blackout in April 2025 demonstrated cash’s importance when digital systems failed, while Greece’s sovereign debt crisis showed repeated spikes in demand amid political and financial instability.

These cases collectively reveal a consistent pattern: in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience.

The ECB emphasises that ensuring resilient access to cash is a matter of national preparedness. Central banks and commercial providers are encouraged to maintain sufficient stocks, build robust contingency plans and anticipate sudden spikes in demand that often occur during rare but high-impact crises.

"Cash, as the only central bank liability directly available to all, can fulfil its role – not just in daily transactions but as a fundamental pillar of economic stability and public confidence, particularly when it is needed most", the study concludes.

Emergency kit checklist in Luxembourg

In March 2025, the European Commission urged all EU member states to advise citizens to prepare 72-hour emergency kits, ensuring self-sufficiency for at least three days in the event of a crisis. The EU-wide guidance came amid rising global instability and more frequent natural disasters.

Luxembourg has long promoted preparedness for emergency situations. Detailed recommendations, covering essentials such as food, water, torches, cash, and copies of important documents, are available on the government’s information portal infocrise.lu. In case of an emergency, real-time alerts are issued via lu-alert.lu and the LU-Alert mobile app.

A 2024 Eurobarometer study shows that 49% of Luxembourg residents feel inadequately prepared for local emergencies. The study also highlights an information gap, with 71% of residents calling for clearer guidance to strengthen their crisis readiness.