BSP Retires 520 MT Of Coins Unfit For Circulation
The Bangko Sentral ng Pilipinas (BSP) has retired a total of 519.93 metric tons (MT) of unfit, demonetized, mutilated, and counterfeit coins through defacement, it said on Wednesday last week.
Photo Insert: Of the total coins defaced, 70% or 364 MT were unfit coins, 25% or 128 MT were mutilated, 4% or 21 MT were counterfeit, and the remaining were demonetized.
“This will ensure that only fit and legal tender banknotes and coins are circulated and used to purchase goods and services,” the central bank said.
Coin defacement is a process that alters the surfaces of coins to prevent them from being recirculated. The defaced coins may then be recycled into different items based on their metallic content.
Of the total coins defaced, 70% or 364 MT were unfit coins, 25% or 128 MT were mutilated, 4% or 21 MT were counterfeit, and the remaining were demonetized.
The defacement process ran from October 2021 until September this year. The BSP is mandated by law to retire or destroy all Philippine banknotes and coins found to be unfit, mutilated, or demonetized, including seized counterfeits.
“To reinforce its continuing efforts to maintain and protect the integrity of Philippine currency, the BSP is also seeking the enactment of a law defining and penalizing the excessive and unnecessary hoarding of coins,” it added.