THE Bangko Sentral ng Pilipinas (BSP) announced on Monday that peso bills with the old currency design, collectively branded as the “New Design Series” (NDS), will be demonetized and will no longer be accepted starting January 1, 2016.
In a news briefing on Monday, the central bank said it will start demonetizing the old bank notes on January 1, and will only accept the new-generation currency bank notes as part of the BSP’s objective to “preserve the integrity of the Philippine currency.”
“This move 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 central bank said.
The NDS has been in circulation for almost three decades.
“The public may continue to use the NDS 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, the NDS banknotes will no longer be accepted for payment transactions,” the central bank said.
In 2010 the central bank issued the new designs for peso bills, collectively branded as the “New Generation Currency [NGC].” Starting next year, only bank notes with this design will be accepted and have monetary value.
To facilitate the transition to the NGC, the BSP said the public may still exchange their old bank notes in banks from January 1, 2015 to December 31, 2016. Old bank notes will be replaced by banks with the new-generation currency design at full face value without charge. The public may also exchange the old bank notes with the BSP in any of its branches in the country.
The central bank reminded that all old banknotes that were not exchanged will no longer have any value and cannot by exchanged in banks anymore starting January 1, 2017.
The BSP said government institutions holding in trust the old bank notes which could not be exchanged during the prescribed period—such as those 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.
The central bank also set a provision for overseas Filipinos with old bank notes in possession and cannot exchange their bills in the prescribed period. The BSP said they may register online from October 1, 2015, to December 31, 2015, through the BSP web site. Their old banknotes may then by exchanged with the BSP within one year from the date of registration.
“The demonetization of the NDS will result in the circulation of a single currency series in the country—the NGC Series. The NGC banknotes which were issued on December 16, 2010, use new and enhanced security features to protect the safety of the public against counterfeiters,” the BSP said.
