by Judith Songlingco · Published on BusinessMirror February 19, 2026
The Chinese New Year: A surge in cash demand
AS the vibrant festivities of the Chinese New Year approached, the excitement isn’t just in the air—it’s felt in the wallets, too! This time of year sparks a significant increase in cash demand as families across the globe prepare for this cherished holiday.
From red envelopes filled with money symbolizing good luck to the bustling markets brimming with preparations, the cultural significance of cash takes center stage. Let’s explore how this annual celebration ignites a financial frenzy, influencing everything from spending habits to economic trends!
IMAGINE this: you’re at a lively family gathering, and suddenly, a shiny red envelope lands in your hands. It’s not just a piece of paper; it’s your ticket to joy and good fortune!
The tradition of giving red envelopes, angpao or ‘hongbao’, is deeply rooted in Chinese culture, symbolizing happiness and wealth. During Chinese New Year, elders and married couples gift these lucky envelopes filled with money to children and unmarried adults as a way to spread blessings for the year ahead.
The amount inside can vary, but it’s typically an even number—except for four, which is considered unlucky. Six and eight are especially favored, representing smooth sailing and prosperity. Getting a red envelope can feel like hitting the jackpot!
This tradition isn’t just for family. In workplaces, employers happily hand out hongbao as a token of appreciation, while businesses give them to clients to strengthen ties. As the New Year approaches, the cash demand skyrockets, creating a festive rush!
AS the CNY approaches, the delightful tradition of giving red envelopes sparks a surge in cash demand that energizes the banking world. In the weeks before the festival, people queue up at banks to exchange worn notes for fresh ones—after all, nobody wants to give crumpled bills during this auspicious occasion!
According to the Financial Times, the People’s Bank of China steps in to meet this demand, injecting billions of yuan into the economy. In 2023, they poured about 1.5 trillion yuan into the financial system; and, for the 2025 celebrations, they set a record with 2.2 trillion yuan.
This trend isn’t limited to China; cities with strong Chinese communities, like Singapore and San Francisco,
also see increased cash withdrawals. For instance, Singapore banks report a 15 percent to 20 percent rise in ATM withdrawals as families prepare for festivities.
THE tradition of giving red envelopes has evolved to accommodate modern technology, with digital angpaos gaining popularity among younger generations. Platforms like Wechat and Alipay enable users to send virtual red envelopes, effectively merging this traditional practice with digital transactions. In 2017, it was estimated that over 100 billion virtual red envelopes were distributed during the New Year holiday.
Despite the rise of digital options, the preference for physical cash remains strong during the Chinese New Year. Many individuals value the tangible nature of giving and receiving physical red envelopes, viewing it as a more authentic expression of the tradition. This preference drives seasonal cash withdrawals, necessitating increased liquidity in the financial system.
THE tradition of giving red envelopes during the CNY symbolizes sharing blessings and good fortune. This practice boosts cash demand, increasing bank activity and prompting the central bank to inject more liquidity into the system.
And while digital red envelopes are taking over the world faster than you can say “angpao,” there’s still something special about the crinkle of a good old-fashioned red envelope. It’s like unwrapping a gift, only you know it’s cash, which makes it even more exciting, as the tradition that keeps the custom at the heart of Chinese New Year celebrations!
As for me, whether it’s a digital angpao popping up on my screen or a physical one sliding into my hands, I’m here for it—arms wide open, ready to embrace the cash! Bring on the blessings and the shopping spree!
Nawa’y sipain at tadyakan tayo ng umaapaw na swerte! Happy Year of the Horse!
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Judith C. Songlingco is the head of Corporate Affairs and Brand Marketing at Philippine Business Bank (PBB) and the secretary of the Bank Marketing Association of the Philippines (BMAP). She can be reached via judith.songlingco@yahoo.com. The writer’s views and her written piece do not necessarily reflect those of the Businessmirror, the PBB and the BMAP.