BSP not worried on demonitization of old bank notes

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MANILA — The Bangko Sentral ng Pilpinas (BSP) is not worried about the full demonitization of old bank notes that are currently in circulation as these only account to about 20 percent of the total.

In a briefing Thursday, BSP Deputy Governor Diwa Guinigundo said paper bills included in the New Design Series (NDS) that are launched in 1985 will have monetary value only until December 31, 2015.

However, holders of the said notes can still exchange it through the authorized agent banks and the central bank’s Cash Department from January 1-December 31, 2016.

”As of April 2015, about 20 percent of the total number of banknotes circulating in the Philippines consists of NDS.

This is an easier task for the BSP in partnership with the general public to retire the NDS,” he said.

Government offices that have NDS after December 31, 2015 due to several reasons like using it as evidence against a litigation case need to submit a formal request to the central bank’s Cash Department to be able to secure a special exchange arrangement.

Also, Overseas Filipinos (OFs) who are abroad and have NDS after December 31, 2015 may register to the central bank’s website from October 1 – December 31, 2016 to be able to exchange their NDS.

Section 57 of Republic Act No. 7653 or the New Central Bank Act allows the central bank to demonitize old bank notes that are more than five years old.

The central bank issued the first batch of the New Generation Currency (NGC) in December 2010.

The NGC have better security features compared to the NDS aimed to further protect the public from counterfeiters.

Guinigundo said they normally print about two to three billion pieces of bank notes annually.

As of last April, there were about 2.8 billion banknotes in circulation. Bulk or 1.7-1.8 billion of these are NGCs while the balance of about 560 million are NDS.

Relatively, the central bank executive reminded the public against mutilation of both the paper bills and the coins since this is prohibited under the law.

Mutilation of paper bills include writing on it and using staple wires to keep them together.

For the coins, people are not allowed to turn it to rings or to put it on the steps of houses as a design among others.