BSP to mint, issue new peso coins by 2019

The Bangko Sentral ng Pilipinas (BSP) is minting new generation peso coins within the next four years.

 

"By 2018 or 2019, we should have one set of new generation banknotes and one set of new generation coins, both with cutting-edge security features,” BSP Deputy Governor Diwa Guinigundo told reporters on Thursday.

 

The central bank's numismatic committee, which counts the chairman of the National Historical Institute as member, has completed a study on the various security features, designs and dimensions for the new coins.

 

The redesigned coins will include an electromagnetic signature that will allow vending machines to reject counterfeits.

 

“We will be finalizing all our recommendations for the approval by the Monetary Board and, as provided by the BSP charter, we are also going to the Palace for the presidential approval,” said Guinigundo, also a member of the numismatic committee. 

 

The timeline for launching the new generation coins hinges on the results of consultations with the general public and banks, the central bank official noted.

 

"It is important to consult with the general public and also with the banks so that we will be able to ensure smooth transition between these two major activities involving currency management,” Guinigundo added. 

 

Provisions for OFWs 

 

The BSP released new generation peso bills in December 2010 to replace the old series launched in 1985.

 

The old peso bills account for 15.89 percent of the total number of banknotes in circulation or 8.51 percent of the total value as of September 30, central bank data show.

 

The BSP is calling on the public to surrender the remaining old banknotes in exchange of the new series.

 

The old series bills can be used for daily transactions until December 2015 and exchanged in banks and BSP offices until December 2016, but will lose monetary value starting January 1, 2017.

 

Provisions are in place for overseas Filipino workers. The central bank will let them register online from October to December 2016 and exchange their old bills within a year from the date of registration.

 

"It would be tragic if we end up having all of those old banknotes that you cannot exchange for the new series if we fail to observe the timeline that we have announced to the general public so far," Guinigundo said. 

 

The 1 centavo

 

The BSP, which regulates the production of banknotes and coins, also plans to “rationalize” the number of lower denominations circulating within the financial system.

 

"Some denominations will have to go because they may have outlived their usefulness as far as the public is concerned. Dimensions may also change because we are now particularly for the higher denominated coins,” Guinigundo said.

 

The central bank currently issues 1-centavo, 5-centavo, 10-centavo, 25-centavo, 1-peso, 5-peso and 10-peso coins for general circulation. 

 

“The 1 centavo cannot be deleted so to speak, because the law provides for that 1-centavo coin because without 1 centavo you cannot have 25 centavos or P1,” Guinigundo said.

 

Slashing the distribution of certain denominations will not necessarily cause a shift in the supply of money in the financial system.  

 

"What we do is project currency in circulation. The banks tell us which denominations are in demand and that is the basis of our printing department in deciding the share of different denominations in the total production of our bank notes,” Guinigundo said. – VS, GMA News