By The Financial District
BSP Assures Adequate Banknotes, Coin Supply
The Bangko Sentral ng Pilipinas (BSP) said there will be a sufficient supply of banknotes and coins during December and throughout the holiday season.
Photo Insert: Demand for new bills normally increases during the Christmas season.
“The BSP assures the public that sufficient supply of fresh banknotes and coins is available in view of the seasonal surge in currency demand,” the central bank said. At the same time, the BSP is also encouraging the public to make use of digital cash for a “safe and convenient alternative” to cash as “e-aguinaldo” to families and friends.
Demand for new bills normally increases during the Christmas season. “Filipinos traditionally give pristine banknotes and coins as gifts or aguinaldo to their families and friends,” said BSP.
Based on historical data, currency demand will start to rise in October until December. The most demanded currency denominations are usually the P1,000, P100, P50 and P20 banknotes. Coins such as P1 and 25-sentimos also have increased demand.
“In line with the BSP’s broader efforts to promote efficient recirculation of fit currency, the public is advised to have their unfit banknotes and coins exchanged for fresh ones with their depository banks at no additional charge. The public is also encouraged to regularly use their coins in paying for goods and services,” said the BSP.
Under Republic Act No. 7653, as amended by RA 11211, the BSP will retire or destroy all banknotes and coins found to be unfit, mutilated, or demonetized, including seized counterfeits. “This will ensure that only fit and legal tender banknotes and coins are circulated and used to purchase goods and services,” said the BSP.
The BSP has a Clean Note and Coin Policy and Coin Recirculation Program. Part of its regular advisory is to remind the public that the willful defacement, mutilation, burning, or destruction of coins may be subject to imprisonment of up to five years plus a fine of P20,000.
To make sure there will be no fake banknotes in ATMs this Christmas season, the BSP has also reminded banks to carefully scrutinize each bank notes. Based on BSP Circular No. 829, issued in 2014, banks are required to submit suspicious banknotes to the BSP for further examination.
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