BANKNOTE and coin withdrawals from the Bangko Sentral ng Pilipinas (BSP) grew at a slower pace last year, reflecting softer economic activity and the increasing use of digital payments.
Central bank data showed that growth in banknote withdrawals, in value terms, slowed to 6.2 percent from 12.5 percent growth in 2024. Volume also grew at a slower 12.9 percent from 20 percent.
In particular, withdrawals of P100 banknotes slowed to 25.3 percent from 43.5 percent, while P50 notes saw an easing to 44.3 percent from 59.1 percent.
Coin withdrawals recorded a steeper drop of 14.4 percent in value from 2024’s 3.4-percent contraction. Volume, however, rebounded to 1.4 percent growth from the previous year’s 0.1 percent decline.
A 21.1-percent drop in demand for 20-piso coin was noted by the BSP.
“It’s because of slower growth,” BSP Deputy Governor Mamerto Tangonan told reporters on Monday. “There could be several reasons because it’s demand-driven.”
“[I]f the consumers are not withdrawing, the banks will not withdraw from us. So, you could think about several reasons. But for larger amounts, it’s [the] shift to digital, because it’s easy,” he added.
Tangonan noted that with the increase in digital payments usage, there could be a possible decline in cash usage.
“Norway and Sweden showed us that with the sustained increase in digital payments, eventually cash [use] could decline,” he said.
Currency in circulation reached P2.9 trillion last year, BSP data showed, growing by a slower 6.4 percent from 2024’s 11.3 percent.
The central bank attributed the deceleration to softer economic conditions and lower inflation, which were said to have tempered demand for physical cash.
“The BSP demonstrated operational agility by realigning in-house production in Q4 2025 toward lower denominations,” it added.
“This ensured a timely supply to fulfill banks’ higher demand and supported the day-to-day liquidity requirements of the public,” it added.
On the deposit side, the BSP reported that the total value of banknotes returned by banks increased 16.2 percent while volume rose 12.1 percent. Both rose from 2024’s 0.4 percent and -6.8 percent, respectively.
Coin deposits, meanwhile, grew by 23.2 percent, slower than the 27.7 percent in 2024.
Fit deposits, or reusable banknotes returned by banks, jumped 32.3 percent in 2025 from 4.6 percent a year earlier, largely due to a 35.2-percent increase in reusable P1,000 banknotes, with polymer notes accounting for 46.4 percent of the deposits.
The BSP said the higher return rate of polymer P1,000 notes also reduced the need to issue newly printed bills.
Withdrawals of fit P1,000 banknotes increased 37.1 percent, while withdrawals of newly printed P1,000 notes fell 19.5 percent.
“The BSP maintained stable and responsive currency management amid moderating economic conditions,” the central bank said.
“Strategic transformation initiatives strengthened supply resilience and advanced operational modernization,” it added.
