The Bangko Sentral ng Pilipinas (BSP) has started to phase out old banknotes, the New Design Series (NDS), to make way for the single currency series, the New Generation Currency (NGC) banknotes.
The process started on January 1 this year as part of BSP’s objective to preserve the integrity of Philippine currency and protect it from counterfeiting.
It 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.
BSP wants to align with the practice of other central banks around the world, which normally change the currency design every 10 years.
The BSP launched the new generation currency bank notes in December 2010. Printing of the old bank notes stopped in 2013. The withdrawal of the old bank notes will allow for the circulation of the NGC banknotes across the country.
The old banknotes’ design (NDS) has been used since 1985. At present, there are 729 million pieces of the old bank notes, with a value of P192 billion, in circulation.
BSP Manila Senior Currency Specialist Remedios S. Ilagan asked the help of the members of the Cebu Association of City and Municipal Public Information Officers (CAOCAMPIO) during their monthly assembly and meeting at the Bangko Sentral ng Pilipinas (BSP) Region VII Office last February 27 to spread the awareness of the demonetization process to avoid future problems.
She hopes the awareness would reach the mountain barangays where some families who likely saves peso bills for later use.
“The old NDS banknotes can still be used to pay and buy for goods and other transactions that require the use of money in 2015, but we strongly suggest the public to keep the old bills and have it replaced with NGC bills at banks or any BSP branches nationwide,” Ilagan said.
Starting January 1, 2016, old NDS banknotes will no longer be accepted for payment but the public can still exchange their old bills for the new generation currency bank notes from January 1, 2015 until end-2016.
After December 31, 2016, the NDS banknotes will have no monetary value in financial transactions nor will the public be allowed to exchange them at banks or at BSP branches nationwide.
The NDS banknotes will be considered demonetized.
Filipinos living abroad will still have a chance to exchange their old notes.
Overseas Filipinos abroad who have in their possession old banknotes which could not be exchanged within the prescribed period should register online through the BSP website starting October 1, 2015 to December 31, 2015.
They will be given a year from their date of registration to exchange the old banknotes at BSP offices and branches.
On the other hand, government agencies who are holding on to old bank notes, which are used in cases, may request the BSP Cash Department for a special exchange arrangement.
Images of the New Generation Currency