Trial run of 10 million polymer banknotes starts in Q2

THE BANGKO Sentral ng Pilipinas (BSP) is set to begin the trial circulation of 10 million polymer banknotes in the P1,000 denomination within the second quarter, with full issuance to the public targeted by 2023.

In its 2021 annual report, the BSP said a memorandum of agreement is being drafted to clarify the guidelines for the trial run.

“The deal will cover matters such as polymer familiarization by client banks’ personnel and calibration of existing cash processing machines, vending machines, automated teller machines, bills acceptors, and other similar devices for compatibility with polymer banknotes,” the central bank said.

The limited circulation test will be done to assess if the benefits seen in polymer bills of other central banks will hold true in the Philippines.

“The test will help us determine the effects of polymerization on hygiene and public health, environmental sustainability, as well as the lifespan, durability, and counterfeiting rates of our money,” the BSP said.

During the trial run, the polymer bills will be circulated alongside the current notes. The public issuance of the polymer banknotes in P1,000 denomination is targeted by next year.

The polymer banknotes will bear the image of a Philippine eagle on the front side, which is a departure from the current notes that feature World War II heroes Jose Abad Santos, Vicente Lim, and Josefa Llanes Escoda. When the design was unveiled in December, various organizations and lawmakers criticized the removal of national heroes from the banknotes, saying it could further deepen the historical revisionism already happening in the country. The central bank also said it is looking at how limited testing circulation of these polymer banknotes could impact the domestic abaca industry as abaca has been used for banknotes since 2001.

Polymer bills are deemed to be more durable as they can last 2.5 to four times longer compared with paper money, and are also water and dirt-resistant, the central bank said.

The BSP partnered with the Reserve Bank of Australia for the pilot testing of the polymer bills.