BSP: Old banknotes demonetized by 2017

By Riza Lozada

All banknotes issued in 1985 or earlier ceases to become a legal tender starting 2017, the Bangko Sentral ng Pilipinas (BSP) said last week as it launched an information campaign on the demonetization.

The banknotes, launched in 1985, are in the denominations of P5, P10, P20, P50, P100, P200, P500 and P1,000, which are accepted currencies up to December 31, 2015, after which the notes can only be exchanged for new ones with banks until 2017.

The public was advised to familiarize themselves with the 1985 series of banknotes in order not to confuse these currencies with the 2010 series, which the BSP said will be the only series of   currencies that can be circulated starting January 1 next year.

BSP Deputy Governor Diwa Guinigundo said the old banknote series can still be used for daily transactions up to the end of this year.

From January 1 to December 31, 2016, the old banknotes can still be exchanged in authorized agent banks and the BSP Cash Department. However, starting January 1, 2017, the old banknote series will be fully demonetized or without monetary value.

The authorization of the New Generation Banknotes (NGB) issued in December 2010, will result in the circulation of a single currency series in the country. The banknotes have more and enhanced security features to protect the safety of the public against counterfeiters, the BSP said.

The demonetization process of the old banknotes is in line with the provisions of Section 57 of Republic Act 7653, otherwise known as the New Central Bank Act, which authorizes the BSP to replace banknotes that are more than five years old. The old banknotes have been in circulation for almost three decades. The BSP thus advises the public of the following:

• The public may continue to use the old banknotes 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, these old 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 old banknotes with the NGB Series at full face value without charge. The public may also opt to exchange their old banknotes with the BSP or any of its regional offices or branches around the Philippines;

• Government institutions holding old banknotes in 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;

• For overseas Filipinos, who have in their possession old banknotes, which could not be exchanged within the prescribed period, they may register online starting October 1 to December 31, 2016 through the BSP website.  These old banknotes may be exchanged with the BSP within one year from  date of registration; and

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