The monetary vase in Japan was down 2.5 percent on year in January, the Ban of Japan said on Tuesday - coming in at 651.107 trillion yen.
That was well shy of expectations for a decline of 0.5 percent following the downwardly revised 1.0 percent contraction in December (originally -0.9 percent).
Banknotes in circulation were down an annual 0.6 percent for the second straight month, while coins in circulation dropped 1.4 percent for the fifth consecutive month.
Current account balances were down 3.0 percent on year, including a 0.6 percent increase in reserve balances.
The adjusted monetary base tumbled 23.9 percent.