BSP Announces Demonitization of Old Peso Bills

Dagupan City (PNA) — Old peso bills will not have any monetary value soon, according to the Bangko Sentral ng Pilipinas (BSP).

Beta Cervantes, head of the BSP regional office Dagupan City Branch, disclosed the replacement process of old banknotes with the New Generation Currency (NGC) banknotes already started January 1.

Although the demonetization process for the old banknotes or the New Design Series (NDS) bills already started, the public may continue using their old banknotes only up to December 31, 2015 in paying and buying of goods and services and other business or financial transactions requiring the use of cash.

Thereafter, the NDS banknotes will no longer be accepted for payment transactions.

From January 1, 2015 to December 31, 2016, the public may exchange with authorized financial institutions, namely: universal and commercial banks, thrift banks, and rural as well as cooperative banks, their NDS banknotes with the NGC series at full face value, without charge. The public may also opt to exchange NDS banknotes with the BSP or any of its regional offices/branches nationwide.

Government institutions holding in trust NDS series which could not be exchanged during the prescribed period, such as banknotes used as evidence in a litigation case, will have to request the BSP Cash Department in writing, within the period of exchange, for a special exchange arrangement.

Meanwhile, Overseas Filipinos (OFs) abroad, who have in their possession NDS banknotes which could not be exchanged within the prescribed period, may register online starting October 1, 2015 to December 31, 2015 through the BSP Website. These NDS banknotes may be exchanged with the BSP within one year from date of registration.

On January 1, 2017, NDS banknotes that have not been exchanged shall no longer have any monetary value and are considered demonetized.

Cervantes said the demonetization is part of BSP’s objective to preserve the integrity of Philippine currency.

“This move is in line with the provisions of Section 57 of Republic Act No. 7653, otherwise known as the New Central Bank Act, which authorizes the BSP to replace banknotes that are more than five years old,” the BSP stated.

The NDS banknotes have been in circulation for almost three decades now. The demonetization of the NDS, according to the BSP, will result in the circulation of a single currency series in the country, the NGC Series.

The NGC banknotes issued on December 16, 2010 have enhanced security features to protect the safety of the public against counterfeiters. (PNA) LGI/LVM/JOHANNE MARGARETTE R. MACOB/RMA