> The banks will do everything to get rid of cash, which, in theory, should devalue the currency. Not necessarily. Far more likely is to encourage investments

> The banks will do everything to get rid of cash, which, in theory, should devalue the currency. Not necessarily. Far more likely is to encourage investments or holding cash-equivalents (bonds). Most banks are not going to engage in currency speculation merely because of a negative interest rate. > Bottom line: negative rates are all about devaluing the currency against other currencies in the world so that the exports become cheaper. No. That is not the goal of negative rates. The goal of negative rates is to encourage investment and spending, not to devalue the currency. The government has much more direct means for devaluing the currency if that's the goal.