BANKNOTES AND

COINS
Leader: Fojas, Matt Wesley I.
Members:
Cantre, Leinshier
Cuison, Melissa C.
Delos Reyes, Princess
Estremera, Patrick Lance
Francisco, Aaron
Matandac, Melissa
Oridinario, Gerald C.
Sarandi, Mary Shaira
Soriano, Roszhane
UNDERWHATAUTHORITYDOESTHE
BANGKOSENTRALNGPILIPINAS
(BSP)ISSUECURRENCY?
TheBSPisthesolegovernmentinstitutionmandated
bylawtoissuenotesandcoinsforcirculationinthe
Philippines.Inparticular,Section50ofRepublicAct
(R.A.)No.7653,otherwiseknownasTheNew
CentralBankAct,stipulatesthattheBSPshallhave
thesolepowerandauthoritytoissuecurrencywithin
theterritoryofthePhilippines.Italsoissueslegal
tendercommemorativenotesandcoins.
WHATDOESTHEBSPISSUE

TheBSPissuesnotesandcoinsforcirculationin
thePhilippines.Italsoissueslegaltender
commemorativenotesandcoins.
HOWISCURRENCYISSUEDTO
THEPUBLIC?
TheSecurityPlantComplex(SPC)deliversnew
BSPbanknotesandcoinstotheCurrencyIssue
andIntegrityOffice(CIIO)forissuancetothe
CashDepartment(CD)andtheRegional
MonetaryAffairsSubSector(RMASS).Inturn,
CDserviceswithdrawalsofnotesandcoinsof
banksinMetroManila,whileRMASStakes
chargeofbanksintheregionsthroughits22
RegionalOffices/Branches.Currencynotesand
coinsareeventuallyissuedtothepublicwhenas
depositors/clients,thepublicwithdrawtheir
depositsfrombanks.
HOWDOESTHEBSPDETERMINETHE
VOLUME/VALUEOFNOTESAND
COINSTOBEISSUEDANNUALLY?
Theannualvolume/valueofcurrencytobeissuedis
projectedbasedoncurrencydemandthatisestimated
fromasetofeconomicindicatorswhichgenerally
measurethecountryseconomicactivity.Other
variablesconsideredinestimatingcurrencyorder
include:requiredcurrencyreserves,unfitnotesfor
replacement,andbeginninginventorybalance.The
denominationalbreakdownisdeterminedusingthe
historicalpercentshareofthedemandforeach
denomination.
 TheBSPlikewiseestablishedaCurrency
ManagementCommitteetooverseetheentire
cashcyclecoveringforecastingofcurrency
demandtocurrencydistributiontoensurethat
theissuanceofcurrencyisconsistentwith
monetarypolicyandadequatetomeetthe
demandfornotesandcoins.
ISTHEREALIMITTOTHEAMOUNTOFNOTESANDCOINS
THATTHEBSPMAYISSUE?

ThetotalamountofbanknotesandcoinsthattheBSP
mayissueshouldnotexceedthetotalassetsofthe
BSP.
WHATISTHEVOLUME/VALUEOFCURRENCY
NOTESANDCOINSINCIRCULATION?

Thereareabout2.91billionpiecesofnotesvaluedat
P913.001billionand25.59billionpiecesofcoins
valuedatP28.78billionincirculationasof30
September2016.
HOWDOESTHEBSPMANAGETHEINTER
CONVERTIBILITYOFPHILIPPINE
CURRENCY?

TheBSPshallexchange,ondemandandwithout
charge,Philippinecurrencyofanydenomination
forPhilippinenotesandcoinsofanyother
denominationrequestedbybanks.IftheBSPis
temporarilyunabletoprovidenotesandcoinsof
thedenominationsrequested,itshallmeetits
obligationsbydeliveringnotesandcoinsofthe
denominations,whichmostnearlyapproximate
thoserequestedasprovidedunderSection55of
R.A.No.7653.
WHATDOESLEGALTENDER
POWEROFACURRENCYMEAN?

Legaltenderpowermeansthatwhenthecurrencyis
offeredinpaymentofadebt,publicorprivate,the
samemustbeaccepted.
ISTHEREALIMITTOTHELEGAL
TENDERPOWEROFPHILIPPINE
CURRENCYNOTESANDCOINS?
Philippinecurrencynoteshavenolimittotheirlegal
tenderpower.However,inthecaseofcoinsin
denominationof1,5and10pisotheyshallbelegal
tenderinamountsnotexceedingP1,000.00whilecoins
indenominationof1,5and10and25sentimoshall
belegaltenderinamountsnotexceedingP100.00,
pursuanttoBSPCircularNo.537,Series2006.
DOESBSPACCEPTSPECIMEN
NOTESFORREPLACEMENT?
No.theBSPdoesnotacceptSPECIMENnotes
forreplacementwithlegaltendercurrency.The
wordSPECIMENprintedacrossthefaceofthe
noteandthe000000serialnumberare
indicationthatthenoteisnotlegaltender.
WHATISTHERESTRICTIONONCURRENCY
IMPORT/EXPORTFORPHILIPPINEPESONOTES
ANDCOINS?

Apersonmayimportorexport,bringinortake
outsideofthecountry,orelectronicallytransferlegal
tenderPhilippinenotesandcoins,checks,money
ordersorotherbillsofexchangeinamountsnot
exceedingP10,000.Priorauthorization(fromthe
BSPsInternationalSubSector)isrequiredwhenthe
exportorimportofPhilippinecurrencyexceedsthis
amount.
WHATISTHENEWGENERATION
CURRENCY?

TheNewGenerationCurrency(NGC)isthebanknote
serieslaunchedandissuedbytheBSPon16
December2010.Thesaidseriesshallbetheonlyseries
thatcanbeusedaspaymentforgoodsandservices
thathasstartedon1January2016.
WHYWASNGCISSUED?
TheNGCwasissuedtoreplacetheNewDesign
Series(NDS)whichthehasbeencirculation
since1985.Thisisonewayofpreserving
integrity.Asamatterofpractice,centralbanks
regularlychangethedesignsofthemoney
whethercoinsorbanknotestoprotectthe
currencyagainstcounterfeiters,bymakingit
difficultandcostlyforthecounterfeitersto
produceexactcopiesofthecurrency.
WHATISDEMONETIZATIONOF
CURRENCY?
Demonetizationistheprocessofremovingthe
monetaryvalueofalegaltendercurrencybythe
issuingauthority.Demonetizedcurrencyshallno
longerbeacceptedforpaymentofgoodsand
services.
UNDERWHATAUTHORITYDOESTHE
BANGKOSENTRALNGPILIPINAS
(BSP)DEMONETIZECURRENCY?
Section57ofR.A.No.7653providesthattheBangkoSentral
maycallinforreplacementofnotesofanyseriesor
denominationwhicharemorethanfive(5)yearsoldandcoins
whicharemorethanten(10)yearsold.
Notesandcoinscalledinforreplacementshallremainlegal
tenderforaperiodofoneyearfromthedateofcall.Afterthis
period,theyshallceasetobelegaltenderbutduringthe
followingyear,orforsuchlongerperiodastheMonetaryBoard
maydetermine,theymaybeexchangedatparandwithout
chargeintheBangkoSentralandbyagentsdulyauthorizedby
theBangkoSentralforthispurpose.Aftertheexpirationofthis
latterperiod,thenotesandcoinswhichhavenotbeen
exchangedshallceasetobealiabilityoftheBangkoSentraland
shallbedemonetized.
WHATBANKNOTESERIESWILL
BEDEMONETIZED?
Thebanknoteseriesthatwillbedemonetizedis
theNewDesignSeries(NDS)banknotesissued
on12June1985.ThedesignoftheNDS
highlightedthecountryssocialandpolitical
developmentandeconomicachievements.Italso
featurestheoldlogooftheBSP.Thepicturesof
theNDScanbeaccessedattheBSPwebsite,
www.bsp.gov.ph.undertheBSPNotesandCoins
section.
WHYDOWENEEDTO
DEMONETIZETHENDS?
Toalignwiththepracticeofothercentralbanks
aroundtheworldwhichchangethedesignof
theircurrencythathasbeenincirculationfor
over10years.InthecaseofthePhilippines,the
NDShasbeenincirculationsince1985orfor
over30years;
TosafeguardtheintegrityofthePhilippine
banknotes;and
TowithdrawfromcirculationtheNDS
banknotes.TheNGCbanknoteswillbetheonly
banknoteseriesthatwillbeusedinthecountry.
WHATISTHENDS
DEMONETIZATIONTIMELINE?
Togivethegeneralpublicampletimetouseand
exchangetheoldbanknoteseries(NDS)andto
ensuretheorderlytransitiontothenew
banknoteseries(NGC),theBSPissuedapublic
announcementon29CurrencyManagementSub
Sector4December2014specifyingthetimeline
forthedemonetizationprocessoftheNDSas
stipulatedinBSPCircularNo.863,asfollows:
 January1December31,2016NDSbanknotes
cannolongerbeusedindaytodaytransactions
topayforgoodsandservices.NDSbanknotescan
onlybeexchangedatfacevalue,freeofcharge,at
BSPauthorizedagentbankandatBSPoffices.
StartingJanuary1,2017,theNDSbanknotes
shallceasetobealiabilityoftheBSPandshall
beconsidereddemonetized.NDSbanknotescan
nolongerbeexchangedattheBangkoSentralor
anyBSPauthorizedagentbank.
WHERECANIEXCHANGETHE
OLDBANKNOTESERIES?
NDSbanknotescanbeexchangedatall
authorizedagentbanks(AABs),i.e.,universal,
commercial,thrift,andruralbanks.AABsare
bankinginstitutionsunderthesupervisionofthe
BSP.NDSbanknotesmayalsobeexchangedat
theCashDepartmentBSPManilaandQuezon
City,andatthethreeBSPRegionalOfficesand
19Branches.
HOWCANPERSONSLIVINGORWORKING
ABROADEXCHANGETHEIRBANKNOTES?
PursuanttoBSPCircularNo.910,Seriesof
2016,OverseasFilipinos(OFs)working/living
abroadwhomayhaveintheirpossessionNDS
banknotesandareconstrainedinexchanging
theirNDSwithinthedemonetizationperiod,may
registertheirNDSbanknoteholdingsthrough
theBSPWebsitestarting1October2016to31
December2016.TheregisteredNDSbanknotes
shallbesubmittedforexchangewithNGC
banknoteswithinone(1)yearfromdateof
registrationatanyBSPOffice,subjecttothe
P50,000.00limitforeachOF.
 Moreover,OFswhoarelocatedincountries
experiencinggeopoliticalcrisiscanavailofthe
BSPexchangefacilityfrom1January2017until
31December2017,subjecttotheP50,000.00
limitforeachOF.
WHATARETHEGENERALFEATURES
OFPHILIPPINECOINS?
Denomination Material Color Shape/Edge
10-Piso Ring: Cupro-Nickel Ring: White Round/Interrupted
Core: Nickel Brass Core: Yellow Serration

5-Piso Nickel Brass Pale Yellow Round/Plain (design

bordered by 12-
scallop)

1-Piso Nickel-Plated Steel Grayish White Round/Reeded

25-Sentimo Brass-Plated Steel Yellow Round/Plain
10-Sentimo Copper-Plated Steel Copper Red Round/Reeded
5-Sentimo Copper-Plated Steel Copper Red Round/Plain (with 4
mm. central hole)

1-Sentimo Copper-Plated Steel Copper Red Round/Plain

ISTHE1SENTIMOCOINSTILLINEXISTENCE?

Yes.The1sentimocoinispartofthesevencoin
denominationstructureofthePhilippinepeso.
ISTHEREASHORTAGEOFLOWDENOMINATIONCOINS?

None.Ofthe25.59billionpiecesofcoinsvalued
atP28.78billionincirculationasof30
September2016,2about56percentarelow
denominationcoins(i.e.,1,5,10and25
Sentimo).Thenumberofcoinsincirculationis
equivalentto253piecesperFilipino.3
WHYDOESTHEPUBLICSOMETIMES
PERCEIVEALACKOFCOINS?
WHATHASTHEBSPDONEABOUTIT?

Thereisnoactualshortageofcoinsasthereare25.4
billionpiecesofcoinsincirculation.Artificialshortage
ofcoinsmayoccurbecauseofthecommonpracticeby
peopleofkeepingcoinsidleinpiggybanks,drawers,
wallets,jars,etc.,andnotrecirculatingthem.Ina
recentinvestigationconductedbyBangkoSentralng
Pilipinas(BSP)agents,thereisanincreaseddemand
for1pisocoinsduetotheiruseinAutomaticTubig
Machinesandcoingameswhichcontributeto
inefficiencyinthecirculationofcoins.
 Somegroupsinthepasthadtriedtosmuggleour1
pisocoinsbutwerenotsuccessful.BSPhad
documentedcasesofillegalhoardingformeltingand
shipmenttoothercountries.Theseillegalactivities
werecloselymonitoredbytheBureauofCustomsand
BSPagents.
Toaddresstheperceivedshortageofcoinsbythe
public,theBSPlaunchedtheCoinRecirculation
Programtopromoteregularuseofcoinsandtoraise
fundstobenefitpublicelementaryschoolsandthe
needyfortheirshelterneeds,i.e.,TulongBaryaPara
saEskwelaandTulongBaryaParasaGawadKalinga.
 AspartoftheProgram,theBSPcontinuouslyconducts
information/awarenesscampaignstomakeallsectors
ofsocietyfullyrealizetheimportanceofcoinsand
developthehabitofregularlyusingtheminpayment
ofgoodsandservicesandingivingexactchange.
WHICHHASAHOLEINTHE
CENTERINTOANECKLACE,WILL
THEYBEVIOLATINGANYLAWS?

Yes.PresidentialDecree(P.D.)No.247prohibitsand
penalizesdefacement,mutilation,tearing,burningor
destructionofnotesandcoins.Thus,applicationof
outsidepressure,substanceorchemicalsthatmay
causedeformation,destructionorchangeinthe
originalstate/shape/colorofthecoinisaviolationof
P.D.No247.
 Ifthe5sentimolegaltendercoinwhichhasa
holeatthecenterisusedplainlyaspendantofa
necklacewithoutanydefacementordestruction
done/madeonthecoin,therewouldbeno
violation.However,itspurposeasameansof
paymentforanygoodsandserviceswas
undermined.
WHATISSEIGNIORAGE?

Seigniorageisthedifferencebetweentheface
valueofthecurrencynote/coinandthecostof
printing/minting.
WHATDOESTHEBSPDOWITHUNFITANDMUTILATED
CURRENCY?

TheBSPwithdrawsfromcirculationthe
unfit/mutilatedcurrencyanddemonetizes/retires
thesamebydestructionthroughshredding.
DOESTHEBSPHAVEADIRECTIVETOBANKSNOTTORE
CIRCULATEUNFITBILLS?

BSPCircularNo.829,Seriesof2014,contains
theconsolidatedrulesandregulationson
currencynotesandcoins,whichincludesamong
others,theprovisiononthetreatmentofunfit
andmutilatedbills,moreparticularlyquoted
hereunder:
Section20.Currencynotesandcoinsconsidered
unfitforcirculationshallnotberecirculated,but
maybepresentedforexchangetoordeposited
withanybank.
AREBANKSREQUIREDTOACCEPTMUTILATEDCURRENCY
NOTESANDCOINSFORREDEMPTION/DEPOSIT?

Yes.BSPCircularNo.829,Seriesof2014,requires
bankstoacceptmutilatedcurrencynotesandcoinsfor
referral/transmittaltotheCurrencyIssueand
IntegrityOffice(CIIO),BSPSPC,Diliman,Quezon
CityoranyoftheBSPsregionaloffices/branchesfor
determinationofredemptionvalue.Banksmaycharge
reasonablehandlingfeesfromclientsand/orthe
generalpublicrelativetothehandling/transportingto
BSPofmutilatednotesandcoins.
AREBANKSREQUIREDTOACCEPTNONMUTILATEDCOINS
FORDEPOSIT?

Yes.BSPCircularNo.897,Seriesof2016,
providesthatbanksshallaccept,without
handlingfeesorcharges,nonmutilatedcoinsfor
deposit,regardlessofdenomination,fromthe
public.
DOESTHEBSPHAVEAHANDBOOKOR
CIRCULARCONTAININGLAWSON
CURRENCYNOTESANDCOINS?

Yes.BSPCircularNo.829,Seriesof2014ortheRules
andRegulationsonCurrencyNotesandCoinscanbe
downloadedfromtheBSPwebsite,www.bsp.gov.ph
underthePublicationandResearchSection.
WHYISTHEBSPCONCERNEDWITHCURRENCYINTEGRITY?

Corollarytoitscurrencyissuepower,theBSPis
alsomandatedunderSection50ofR.A.No.7653
topreserveandmaintaincurrencyintegrity.
HOWDOESBSPPRESERVEANDMAINTAINTHEINTEGRITY
OFTHECURRENCY?

UnderRepublicActNo.7653,otherwiseknownasTheNew
CentralBankAct,theBSPisvestedwithpoliceauthorityto
investigate,makearrests,andconductsearchesandseizures
inaccordancewithlaw,forthepurposeofmaintainingthe
integrityofthecurrency.
TheBSPalsoconductsinformationdisseminationcampaigns
totraincashhandlersandfamiliarizethegeneralpublicon
thesecurityfeaturesofgenuinePhilippinecurrencynotesand
coinsandotheracceptableforeigncurrencies.Atthesame
time,BSPadvocaciessuchastheCleanNotePolicy,Coin
RecirculationProgram,RevisedRewardSystemandother
relatedcampaignsarepromoted.The22BSPRegionalOffices
andBranchesalsoconductinformationdissemination
campaignsthroughoutthePhilippinestofamiliarizethe
publiconthefeaturesofthePhilippinecurrencyandpromote
currencyrelatedadvocacies.
HOWDOESONEHANDLERECEIPTOFCOUNTERFEIT
MONEY?

Anypersonorentity,publicorprivate,who
receivesanoteorcoinwhichiscounterfeitor
whosegenuinenessisquestionablewhether
Philippineorforeigncurrencyshall:
I ssuetemporaryreceipttotheowner/holder
indicatingthename,address,communitytax
certificateorthepassportnumber,ifforeigner;
I ndicatefurtherthedateofreceipt,
denomination,serialnumberinthenoteorseries
incaseofcoins;
R equiretheowner/holdertocountersignthe
receipt;incaseofrefusal,statethereasontherein;
 Thecounterfeitmoneymustbeforwardedfor
examination/appropriateactionwithinfive(5)working
daysafterthereceipttotheCIIO,BSP,EastAvenue,
QuezonCity.IncasepersonaldeliverytoCIIOisnot
feasible,deliveryofsaidnotesandcoinsmaybemade
throughtheBSPsregionaloffices/branchesorany
bankinginstitutionunderthesupervisionoftheBSP;

Ifthesituationwarrants,reporttotheCIIOBSP,the
PhilippineNationalPolice(PNP)orotherlaw
enforcementagenciesforfilingofappropriatecriminal
chargesforviolationofpertinentarticlesinthe
RevisedPenalCodeoncounterfeiting.
WHATDOESTHEBSPDOWITHTHEFAKEBILLS?

PursuanttoSection6ofCircularNo.829Series
of2014,allnotesandcoins,whetherPhilippine
orforeign,determinedbytheCIIO,BSPtobe
counterfeitcurrency,shallnotbereturnedtothe
owner/holder,butshallberetainedandlater
disposedofinaccordancewithsuchguidelinesas
maybeadoptedbytheBSP,exceptthosewhich
willbeusedasevidenceinaninvestigationor
legalproceedings,inwhichcase,thesameshall
beretainedandpreservedbytheBSPfor
evidentiarypurposes.
WHATIFTHEPERSON,WHOHASTHECOUNTERFEIT
CURRENCY,REFUSESTOTURNINTHECOUNTERFEIT
CURRENCY?

Theindividualwhoisrequestingtheturninginof
counterfeitnotesshouldconvinceandexplaintothe
holderthatkeepingcounterfeitcurrencywillcause
legalproblems.Iftheholderofcounterfeitnote
continuestorefusethehandoverofthecounterfeit
note,themattershouldbereportedtothenearest
policeagency/lawenforcer,forappropriateaction.
DOESTHEPUBLICHAVETHERIGHTTOBRINGTHECASE
TOTHEPOLICE?

Yes.Section5ofRule113oftheRulesofCourt
providesthatapeaceofficeroraprivateperson
may,withoutawarrant,arrestaperson:
(a)When,inhispresence,thepersontobe
arrestedhascommitted,isactuallycommitting,
orisattemptingtocommitanoffense;and
(b)Whenanoffensehasjustbeencommitted,
andhehasprobablecausetobelievebasedon
personalknowledgeoffactsorcircumstances
thatthepersontobearrestedhascommittedit.
DOESTHEBSPOFFERREWARDFORINFORMATION
ONCOUNTERFEITINGACTIVITIES?

Yes.In2004,theBSPRevisedRewardSystemwaslaunched
designedtoencouragepublicsupportandparticipationand
toensurebetterchancesofsuccessfulanticounterfeiting
operations.Thesaidsystemprovidesfinancialrewardto
personswhogiveinformationoncounterfeitingactivitiesof
unscrupulousindividualsthatledtotheirarrest,
seizure/confiscationofcounterfeitcurrenciesand
counterfeitingparaphernaliaandthefilingofappropriate
chargesincourt.ThecoverageoftheBSPRevisedReward
Systemwasfurtherexpandedon12February2009to
includeinformationinvolvingthehoardingand
mutilation/destructionofPhilippinecurrencycoins.
WHATDOWEDOWHENWECATCHAPERSON
WRITING/PUTTINGMARKSINBANKNOTES?

Incaseyoucaughtapersonwriting/puttingmarksin
banknotes,pleasewarnorinformthepersonofthe
AntimutilationLaworP.D.247whichprohibitsand
penalizestheactofcurrencydefacement
(writing/puttingmarks),mutilation,burning,tearing
oranymannershowingactofwilful/intentional
mutilation.