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BSP to demonetize old banknotes beginning January 2015


Better start exchanging your old banknotes with new ones: the Bangko Sentral ng Pilipinas (BSP) will start demonetizing the old ones at the start of 2015, the central bank announced Monday.
 
As defined by the BSP, demonetization is the process of removing the monetary value of a legal tender currency.

 
 

 
 
But fret not, the old banknotes, known as the New Design Series, can still be used for paying, buying and other transactions requiring the use of cash up to Dec. 31, 2015, BSP deputy governor Diwa Guingundo said in a briefing.
 
But from Jan. 1, 2015 to Dec. 31, 2016, the public can exchange the notes with financial institutions—universal, commercial, thrift, rural and cooperative banks—and BSP's branches across the country at face value and without charge, he said.
 
For overseas Filipinos who can't exchange the old bank notes in their possession within the period, they may register online starting Oct. 1, 2015 to Dec. 31, 2015 through the BSP website.
 
Because starting Jan. 1, 2017, old banknotes that have not been exchange shall no longer have any monetary value, Guinigundo said.
 
The move to demonetize old banknotes is in line with the practices of central banks across the world and to protect the integrity of the Philippine currency.
 
"We wanted to align with the practice of other central banks around the world, which normally change their currency design every ten years," Guinigundo said
 
"In the case of the Philippines, banknotes have been in use since 1985, that's 29 years and 29 years is too long a time to retain the same design of the bank notes," he said.
 
"Secondly, want to safeguard the integrity of the Philippine banknotes. This has something to do with security and our drive against counterfeiting," the central bank official added.
 
In December 2010, the BSP issued new bankotes—called "New Generation Currency"—which have new and enhanced security features to protect the public from counterfeit or fake money.
 
As of November,  Guinigundo said there are 729 million pieces of old banknotes, worth about P192 billion, still in circulation. That's 25 percent of total volume of banknotes in circulation or 26 percent of total value.
 
The public may also keep the old banknotes as souvenir for their collection, Guinigundo said. "They have the liberty to do that." — TJD, GMA News
Tags: money, banknote
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