BSP extends demonetization deadline anew to end-June

THE BANGKO SENTRAL ng Pilipinas (BSP) has given more time for the public to exchange old bills until endJune, with only a small volume remaining in circulation.

BSP Deputy Governor Diwa C. Guinigundo said the Monetary Board gave a fresh three-month extension to exchange old banknotes before banks and BSP offices.

The move was largely a “response to public clamor” for more time to get these notes replaced, Mr. Guinigundo said during a press briefing at the central bank’s headquarters in Manila.

Mr. Guinigundo, however, said only about 2% of total bills in circulation are New Design Series currencies, which have been demonetized in 2015. This translates to 284 million pieces worth P19.2 billion, versus the P983.3 billion in total funds in the economy as of end-February.

Prior to this extension, the exchange period for the 1985-issued bills was set to end by March 31, already extended from the original December 2016 deadline. Beyond June 30, these bills will lose their value. The BSP has the sole authority to issue money for general use. As standard practice, central banks regularly switch the design of bills and coins as a guard against counterfeiting.

The BSP issues bills worth P20, P50, P100, P200, P500, and P1,000. Central bank officials have said that they are also studying new designs for coins.

In December, the central bank also released the first batch of new bills carrying newly-installed President Rodrigo R. Duterte’s signature.

The central bank first released the New Generation Currency series in December 2010 as it gradually phased out the use of the 1985 design set.

The old money has been rendered unusable for daily transactions as of Jan. 1, 2016. —