Pimentel wants probe on ‘impractical’ P1K polymer bills

Senator Aquilino “Koko” Pimentel III has filed a resolution urging the Senate to look into the production by the Bangko Sentral ng Pilipinas (BSP) of the P1,000 polymer banknotes that are more sensitive and less flexible than the current bill.

The senator also asked the BSP to stop the issuance and the production of the bills citing the “mounting complaints” over its practicality as a legal tender.

“The issuance of these polymer bills to replace our old banknotes is absolutely absurd. Our bills should be designed in such a way that they can withstand a minimum amount of abuse like crumpling and folding. Parang gusto pa yata nila ilagay sa frame yung bills para kunwari matibay,” he said.

“The BSP should suspend the production of these banknotes ASAP,” he added.

While polymers are said to be sturdier than abaca, they do not have the needed flexibility to allow people to store their bills in their pockets, purses, money clips or even small wallets. They are also sensitive to chemicals.

Pimentel also warned the BSP’s shift to polymer from the indigenous abaca is detrimental to local producers. He expressed concern it might impact the industry negatively, which he said currently earns $97.1-million per year from the exports abaca fibers and manufactures.                                            

The legislator further questioned the BSP’s “arbitrary and hasty changes” in the design of the Philippine coins and banknotes.

In filing his resolution, Pimentel said there is a need to find out who are the other agencies involved and consulted for the country’s monetary design; how much does the government spend when changing; the problems BSP encountered when the new design series was demonetized and whether there were complaints from the public.

He also said senators should inquire about the reasons of the BSP for changing the current P1,000 banknote and whether the new P1,000 polymer note is truly a “limited series."

Earlier, the BSP clarified retailers and banks should still accept folded bills — regardless if paper or polymer — as payment for day-to-day transactions. Its remarks came following reports that a mall refused a P1,000 polymer bill because it was folded.

The mall clarified it is accepting folded bills, but not the mutilated ones.

Inflation

Further, Pimentel asked the BSP to just refocus their attention on their mandate to fight inflation which stood at 6.1% in June–the fourth straight month of acceleration and the highest reading in over three years since October 2018’s 6.9%, according to the Philippine Statistics Authority.

“Concentrate your energy on inflation. Ngayon may nabasa ako, meron silang ginawa na nagtaas sila ng interest rate (I've read that they increased interest rate). Okay, concentrate your energy explaining to the people why will this address inflation,” he said in a Super Radyo dzBB interview on Sunday.

“‘Wag niyong i-assume, mga professors kayo lahat, na ‘yan na ang sagot. Ipaliwanag ninyo sa taumbayan kung bakit ‘yan ang sa tingin ninyo ang isang hakbang na makakatulong sa pagpapababa ng inflation,” he added.

(You are all professors there. Don't assume that the people already know the answer. Explain to them why you think that is a step that will help lower inflation.)

A June 2022 survey by Pulse Asia showed that controlling inflation is the main concern of Filipinos at present, as 57% of Filipinos want the Marcos administration to take measures to address the problem. —LDF/KG, GMA News