MANILA -- New president, new bank notes.
The public can expect the issuance this 2016 of bank notes bearing the signature of President Rodrigo Duterte, who won in the May national polls.
Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo told reporters yesterday that the central bank “will be getting the specimen signature sometime within the year.”
He said he is sure that BSP will issue Duterte-signed paper bills within the year because there should be a banknote that will be issued in his first year of office,” he said.
Guinigundo said the central bank normally issues about three billion bank notes annually, mostly composed of the P50 and P100 denominations.
With the drop in demand for the P20 bills, Guinigundo said they increased production for P500 and P1,000 bills.
“Standards have risen so we need to get more higher denomination bills,” he added.
Last year, the central bank demonetized bank notes included in the New Design Series that were issued since 1985, which lost monetary value on Dec. 31, 2015.
Demonetization of the old series paper bills was done three decades after the central bank issued the NDS.
Under Section 57 of Republic Act (RA) No. 7653 or the New Central Bank Act, the BSP may replace notes of any series that are more than five years old and coins that are more than 10 years old.
The BSP defines demonetization as “the process of removing the monetary value of a legal tender currency by the issuing authority.”
Demonetized currencies will no longer be accepted for payment of goods and services.
While Philippine residents can still exchange their NDS holdings with the central bank until this year without limit on volume, Filipinos abroad can only swap up to worth P10,000.
Effective January 1, this year, the old notes are not considered as a liability of the BSP anymore and only the New Generation Currency (NGC) notes will be honored as legal tender.
The central bank issued the first batch of NGCs in December 2010.
As of end-September 2015, there are about 2.29 million NGCs in circulation, amounting to P722.98 billion.*PNA
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