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The rise coincided with the government’s move to double the monthly limit for fee‑free ATM withdrawals from HUF 150,000 to HUF 300,000, a change that banks criticized because they must still pay the 0.9% transaction tax on all cash withdrawals, according to the Hungarian online business and economic news portal Economx.hu.
Analysts note that similar spikes occurred in 2014, when free withdrawals were first introduced, and in 2022, when March saw a historic record increase of HUF 323.5 bln.
The article suggests that not only policy changes but also war‑related fears and the approaching 2026 election, whose outcome is seen as uncertain, may be driving households to hold more cash.
Cash demand briefly fell only during the extreme inflation of 2023, when interest in large‑denomination notes used for savings declined. The MNB has even required banks and the postal service to prepare contingency plans for cash supply, underscoring how the surge in cash use signals both economic anxiety and the persistence of the informal economy.
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