THE annual growth in banknote withdrawals from the Bangko Sentral ng Pilipinas (BSP) may have slowed due to a lethargic economy coming into the end of 2025.
In its Annual Report 2025, the central bank noted that annual growth in banknote withdrawals rose only by 6.2 percent in value. The bulk cash reserves pulled directly from the central bank reached P1.57 trillion, up 6.2 percent compared to the P1.48 trillion in 2024.
Meanwhile, the report noted that volume grew ‘strongly’ at 12.9 percent, growing to 3.46 billion pieces from the 3.07 billion pieces in 2024.
According to the BSP, the momentum came from ‘higher-than-expected’ withdrawals of 100-peso and 50-peso denominations, which rose by 25.3 percent and 44.3 percent, respectively.
The BSP credited itself as having ‘demonstrated operational agility by realigning in-house production in Q4 [fourth quarter] 2025 toward lower denominations.’ By doing so, the central bank saw that it ensured a ‘timely supply’ to fulfill banks’ higher demand and supported the day-to-day liquidity requirements of the public.
Explaining the reason why banknote withdrawals slowed in 2025, BSP Deputy Governor for Payments and Currency Management Sector Mamerto E. Tangonan said the slower growth in gross domestic product (GDP) in the latter part of 2025 could have weighed on cash withdrawals.
‘There could be several reasons [because the withdrawals are] demand-driven,’ Tangonan told reporters last Monday. ‘If the consumers are not withdrawing, siyempre [of course] the banks will not withdraw from us [BSP].’
‘So you could think about several reasons, could it be the slower GDP? May mga ganung factors,’ he added.
As for coin withdrawal, its value declined by 14.4 percent to P8.4 billion in 2025 from the P9.8 billion in 2024. The BSP said this was largely due to a 21.1-percent drop in demand for the highest coin denomination, the 20-piso coin.
Meanwhile, the volume of coin withdrawal grew 1.4 percent to 1.798 billion pieces in 2025 from the 1.77 billion recorded in the previous year.
The BSP attributed the increase in the volume of coin withdrawal last year to higher demand for 25-sentimo and 5-sentimo coins.
Meanwhile, total banknote deposits with the central bank in 2025 increased by 16.2 percent in value and 12.1 percent in volume.
As for coin deposits, the central bank said it grew significantly, rising by 23.2 percent in value despite a slight decrease in volume.
According to the BSP, currency in circulation in 2025 reached P2.9 trillion, reflecting an annual growth rate of 6.4 percent, slower than the 11.3 percent growth rate in 2024.