The Market Monitor Minding the Nation's Business
The Bangko Sentral ng Pilipinas (BSP) will issue starting second quarter of 2022 polymer banknotes which are more cost-efficient, durable and hygienic than the paper-based bills.
BSP Governor Benjamin Diokno sought the assistance and reached an agreement with the Reserve Bank of Australia and its subsidiary Note Printing Australia for the production of polymer banknotes for the Philippines.
Diokno said, “Australia is the first country to issue full series polymer banknotes and has produced and supplied polymer banknotes to several countries.”
“Their advanced technology and expertise in the printing of polymer banknotes will be the best benchmark for our first circulation,” he added.
Diokno said the first batch of polymer banknotes will be delivered in April 2022.
BSP Deputy Governor Mamerto Tangonan said a circulation test will run between 2022 and 2025 with the release of 500 million pieces of the P1,000 bill.
Tangonan estimates BSP’s potential savings in producing polymer banknotes instead of the paper-based bills: “From our cost of production, we are seeing in the region of 60 percent more (savings) for polymerized banknotes.”