The number of 10,000 yen banknotes in circulation in Japan has increased significantly compared to a decade ago, most likely due to the New Coronary Pneumonia (CCP virus) Epidemic.
According to the Bank of Japan, as of the end of last year, the largest denomination of 10,000 yen notes in circulation in Japan was 110 trillion yen, a jump of 5.3% from a year ago and 1.5 times more than a decade ago. The annual growth rate of the number of 10,000 yen notes in circulation in recent years has been between 2% and 4%.
Chief economist of the First Life Economics Research Institute, Eisei Kumano, said that the huge increase in the circulation of 10,000 yen notes reflects the rising anxiety around the world.
During the worsening of the epidemic last year, the National Bank Association of Japan advised people to cooperate to avoid branch congestion in order to reduce the risk of infection. As a result, Japanese people are now holding more cash on hand to reduce the need for frequent bank or ATM withdrawals.
The Dai-ichi Life Economics Research Institute estimates that The Japanese people had about 55.5 trillion yen in banknotes hidden at Home as of the end of last year. Because of low interest rates and rising ATM fees, Japanese people have long been uninterested in keeping their money in banks.
However, while the number of 10,000 yen notes in circulation has increased, the number of 1,000 yen notes has decreased by 0.3% year-on-year. Nissen Institute of Fundamental Research senior economist Goshi Ueno said that the reason for the decrease may be related to the decline in demand for change.
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