Tighter economic conditions dampened cash demand last year, with banknote and coin withdrawal growth slowing sharply.
Data showed banks’ banknote withdrawals from the central bank rose 6.2% to P1.568 trillion in value, down from 12.5% growth the prior year.
Withdrawal volume reached 3.466 billion pieces, a 12.9% increase that eased from 20% growth in the previous period.
Demand for P100 and P50 denominations climbed 25.3% and 44.3%, respectively.
Coin withdrawals declined 14.4% in value to P8.398 billion, a steeper drop than the 3.4% fall recorded a year earlier.
In volume terms, coin withdrawals rose 1.4% to P1.799 billion, driven by higher demand for five- and 25-centavo coins.
A central bank official attributed the slower withdrawal growth to weaker economic activity and reduced consumer demand.
Philippine economic growth fell to 4.4% in 2025, a post-pandemic low, as a corruption scandal weighed on state spending, consumption, and investment.
The official said tighter withdrawal regulations were not a factor, noting those measures addressed anti-money laundering compliance rather than demand.
A P500,000 withdrawal ceiling was introduced in September amid money laundering concerns, though higher amounts remain permitted with proof of legitimate business purpose.
The rise of digital payments is expected to further reduce cash demand, with such transactions making up 57.4% of monthly retail volume in 2024.
Currency in circulation reached P2.9 trillion, up 6.4% from the prior year but slower than the 11.3% increase seen in 2024.
The central bank cited weaker economic activity and slower inflation for the moderated growth in circulating currency.
