TACLOBAN CITY, Leyte, (PIA) – The Banko Sentral ng Pilipinas Tacloban branch has reminded the public of the continuing demonetization process of old banknotes which started January 1, 2015 until December 31, this year.
This means that within this period the old bank notes known as the New Design Series (NDS) can still be used alongside with the New Generation Currency (NGC) banknotes for day to day transactions to pay for goods and services while the process is still ongoing, BSP Tacloban branch head Ludivina M. Realina said during the Panginsayod ha PIA held Tuesday.
Demonetization as defined by BSP is the process of removing the monetary value of a legal tender currency by the issuing authority.
In an answer to the query why do we need to demonetize? Realino clarified that this is to safeguard the integrity of the Philippine banknotes especially that the new peso bills known as the new generation currency has updated security features.
Thus, BSP is encouraging the public to use the old banknotes in their possession within this period or exchange them at the BSP cash department office because old banknotes will fully lose its monetary value.
Realina further said that from January 1, 2016 until December 31, 2016, old banknotes can no longer be used in day to day transactions but can be exchanged at face value, free of charge, at the Cash Department of the BSP’s regional office or at any BSP authorized agent bank. Instead of the old peso bills, the NGC banknotes will be the banknote series that will be used starting January 2017.
The move is to align with the practice of other central banks around the world which change the design of their currency that has been in circulation for over 10 years. In our country, the old banknotes have been in circulation since 1985 or over 29 years.(ajc/PIA-8)