CBC assures ample money supply for holiday season

CEBU, Philippines - The Cebu Bankers Club yesterday assured the public there will be enough cash for withdrawal as the holiday season peaks in the coming weeks through December.

"We have already relayed to BSP (Bangko Sentral ng Pilipinas) our withdrawal forecast for the season since July," CBC past president Maximo Eleccion told The FREEMAN on Monday.

Eleccion noted that there should be no problem as far as the availability of cash from the BSP is concerned.

"And anytime we withdraw we can always be served," the bank official said.

From January to August this year, official data showed that banks' cash withdrawals from the BSP-Cebu amounted to P38.7 billion or a total of 115,947,400 pieces of banknotes.

Coins withdrawn from BSP-Cebu also reached 46,098,600 pieces or P82.77 million during the period.

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

These bank withdrawals include payroll transactions and withdrawals of small businesses.

Eleccion had projected that money in circulation is expected to double during the peak Christmas season.

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

Preliminary data showed that domestic liquidity grew by 12.6 percent year-on-year to P8.8 trillion in September, faster than the 11.9-percent (revised) expansion in the previous month.

On a month-on-month seasonally-adjusted basis, domestic liquidity increased by 1 percent.

Demand for credit remains the main driver of money supply growth.  (FREEMAN)

 

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