BSP-Cebu records P38.7B withdrawals in first 8 mos

Banks' cash withdrawals from the Bangko Sentral ng Pilipinas-Cebu from January to August this year amounted to P38.7 billion.

Cebu Bankers Club past president Maximo Eleccion told The FREEMAN yesterday that the huge cash withdrawal during the period is a reflection of Cebu's vibrant economy.

"These withdrawals were mostly loaded in ATM machines and also over the counter withdrawals of clients from banks," Eleccion said.

The bank executive said these bank withdrawals include payroll transactions and withdrawals of small businesses.

"It should be noted that the bulk of banking transactions were already done through clearing operations or checks, online transactions and debit and credit transfers," the former CBC president said.

Based on the data obtained by The FREEMAN from BSP Cebu, total withdrawal of banknotes during the eight-month period totaled P38.66 billion or a total of 115,947,400 pieces.

Coins withdrawn from BSP-Cebu also reached 46,098,600 pieces or P82.77 million.

In the first eight months of 2016, BSP-Cebu received a P19.47-billion worth of banknotes shipments. Shipments of coins totaled P71.08 million.

The data suggest withdrawals exceed shipments because banks' currency/withdrawal requirements are sourced not only from the shipments during the period but also from the buffer stock or shipments received prior to the current period.

Eleccion projected that money in circulation will double, now that the Christmas season has started.

Normally, supply of money increases during the Christmas season when consumer spending usually rises as people receive bonuses.

"That (money circulation) would double than the usual months. November and December cash withdrawals are double than the other months of the year," Eleccion further explained.

"For banks, we will submit to BSP withdrawal forecast for those months including new bills for the Christmas season," the bank official also said.

In general, the Bangko Sentral said the robust expansion of domestic liquidity remains adequate to support economic growth.

Domestic liquidity is the broadest measure of money within an economy.

In July alone, BSP said money supply continued to expand during the month on account of sustained demand for credit.

"Moving forward, the BSP will continue to monitor monetary conditions closely to ensure that liquidity growth remains consistent with the BSP’s objectives of price and financial stability," BSP earlier said.