Local production of polymer banknotes set next year

The Bangko Sentral ng Pilipinas (BSP) is preparing to manufacture polymer banknotes locally by 2027, a move aimed at reducing the country’s long-term dependence on foreign suppliers.

BSP Deputy Governor Mamerto Tangonan said the central bank is setting up a production line at its Security Plant Complex (SPC) in Quezon City, with an estimated annual capacity of 500 million banknotes.

“It’s within 2027,” Tangonan said last week on the sidelines of a tour of the BSP facility.

He said the initiative would allow the central bank to develop the capability to produce its own polymer bills rather than rely indefinitely on imports, including supplies from Australia.

“We have to learn to operate the polymer lines so that we’re not forever just importing,” he said.

The country’s polymer banknote series currently includes the ₱1,000 denomination, introduced in April 2022, and the ₱500, ₱100 and ₱50 bills.

The BSP has cited the enhanced security features of polymer banknotes, which make counterfeiting more difficult, as well as their lower global warming potential compared with conventional paper bills.

Polymer banknotes also offer a longer service life. According to the central bank, they can last up to 7.5 years, compared with around 1.5 years for paper banknotes.

The planned local production is expected to strengthen the BSP’s capacity to manufacture the country’s currency while building expertise in operating polymer banknote production equipment.