The Central Bank will put another £1 billion worth of notes and coins into circulation this week to meet the demands of unprecedented levels of Christmas shopping.
Up to the end of last week £3.6 billion was in circulation - 21 per cent up on the same period last year. The Central Bank expects this to reach £4.6 billion in the run-up to Christmas Eve.
The demand for cash always rises at Christmas, but this year a particularly big increase is expected, on the basis of strong growth in consumer spending.
Final spending figures will not become available for some time, but all the indications are that it is running well ahead of last year. Turnover for the Christmas period has been up by between 10 per cent and 12 per cent in Dublin, between 8 and 10 per cent in Cork, and 12 and 15 per cent in Galway, retailers say.
"Certainly there is a buoyancy there we have not seen since the late '70s and early '80s," according to the company secretary of Clerys store in Dublin, Mr P.J. Timmins.
"Individual retailers are reporting increases on last year of 22 per cent and 34 per cent, and last year was a boom year," Dublin Chamber of Commerce spokesman Mr Ed O'Neill said.
In addition to the economic boom, some of the increased business was being attributed to more people planning to entertain at home over the holiday period. Low interest rates also meant shoppers had more disposable income.
The strength of sterling resulted in increased numbers of Northern Ireland customers coming to the Republic to shop, and this trend was very noticeable in recent weeks, according to the general manager of Brown Thomas and BT2 in Grafton Street, Dublin, Mr Duncan Graham. "People are also concentrating on high-class household items, once-off purchases, and millennium gifts - anything with the millennium logo is walking off the shelves," Mr O'Neill said.
Ten years ago Cork city retailers worried about running short of five and 10 pence coins, said Mr James O'Sullivan, spokesman for the Cork Business Association.
"This year there is a shortage of five pound notes. Every shopper now has £50 notes, compared to £20 notes a few years ago," he said.
The feedback also suggested that Cork was attracting more shoppers from throughout Munster, with more visitors from Limerick, Waterford and Kerry than in previous years, Mr O'Sullivan said.
Some £50 million would be spent over the Christmas period in Galway city, according to Heart of Galway city centre co-ordinator, Mr Michael Heneghan. Retailers reported increased sales for each weekend this month, while the number of mid-week shoppers was also up.
The increased cash spending is in addition to significant increases in the amount of credit and Laser card transactions.
Retailers throughout the State have reported marked increases in the number of "plastic" transactions. "Research I carried out showed that there has been more growth in this area in the last two years than in the previous 15 years," Mr Timmins said.
However, in Limerick some retailers, such as certain drapery sectors, fashion jewellery and giftware were reporting no significant growth on sales last Christmas, according to the local Chamber of Commerce immediate past president, Mr James Kenny.
But there were a number of busy days left and Mr Kenny said retailers were hopeful of a boost from people returning from Britain for their holidays.
"Many of these will buy their presents when they come home because the difference between sterling and the punt means they will enjoy a 25 per cent discount," he said.