MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) urged businesses to continue accepting old banknotes until the end of 2015.
But the central bank clarified the New Denomination Series (NDS) banknotes could still be exchanged in banks and BSP offices until December 2016 before being demonetized in January 2017. (READ: BSP: ‘Old’ PH peso bills valid until Dec 31)
“These (NDS banknotes) are still good until the end of December,” BSP Deputy Governor Diwa Guinigundo told reporters on Monday, December 21, during the launching of the new limited P10-commemorative coin for the 150th birth anniversary of General Miguel Malvar. (READ: BSP issues limited edition P10-Miguel Malvar coin)
Starting January, only the New Generation Currency (NGC) bills would be the currency in circulation. (READ: BSP starts shift to ‘New Generation Currency’ bills Jan 1)
The demonetization process is in line with the provisions of Section 57 of Republic Act No. 7653 or the New Central Bank Act, authorizing the BSP to replace banknotes that are more than 5 years old. The old banknotes have been in circulation for 3 decades.
NGC in circulation
According to Guinigundo, the percentage of NDS banknotes to the number of those in circulation has been reduced to 14.6% or 414.65 million pieces as of end-October 2015 from 20.98% or 711.68 million pieces in end-December 2014.
In terms of value, the percentage of NDS banknotes to the value of banknotes in circulation was reduced to 7.53% or P61.35 billion ($2.90 billion) from 20.41% or P184.35 billion ($3.9 billion) in end-2014.
Guinigundo said a total of 2.42 billion pieces of NGC banknotes worth P753.42 billion ($15.94 billion) have been released into the system, bringing the total banknotes in circulation to 2.84 billion pieces worth P814.8 billion ($17.23 billion).
For those who have not exchanged their NDS bills yet, here again are the reminders earlier issued by the BSP:
- The public may continue to use the old banknotes until December 31, 2015, in paying and buying of goods and services and other business or financial transactions requiring the use of cash. After that date, the old banknotes will no longer be accepted for payment transactions.
- From January 1, 2015 to December 31, 2016, the public, without charge, may exchange with authorized financial institutions (universal and commercial banks, thrift banks, and rural as well as cooperative banks), their old banknotes with the NGC series at full face value. The public may also opt to exchange their old banknotes with the BSP or any of its regional offices or branches around the Philippines.
- Government institutions holding old banknotes which could not be exchanged during the prescribed period, such as banknotes used as evidence in a litigation case, will have to request the BSP Cash Department in writing, within the period of exchange, for a special exchange arrangement.
- For overseas Filipinos who still have old banknotes but could not exchange within the prescribed period, may register online starting October 1, 2016 to December 31, 2016 through the BSP website. These old banknotes may be exchanged with the BSP within one year from date of registration.
- Starting January 1, 2017, the old banknotes that have not been exchanged shall no longer have any monetary value, and are considered demonetized.
New Generation Coins
Meanwhile, Guinigundo said the BSP has started consultations with stakeholders on the proposed new generation coins that would feature the electromagnetic signature (EMS) to guard against tampering and counterfeiting activities. (READ: Proposed PH coins to be more counterfeit-resistant – BSP)
“The BSP is still finalizing the new generation coins which we expect to issue 3 or 4 years from now. We’re studying the designs as well as metal composition,” he added.
The existing one-centavo, 5-centavo, 10-centavo, 25-centavo, P1, and P5 coins have been in circulation since 1995.
The P10 coins bearing the profiles of Andres Bonifacio and Apolinario Mabini on the obverse side was issued in 2001. – Rappler.com
$1 = P47.27