BSP gives 3 more months to exchange old banknotes

1985 old Philippine peso bills, named the New Design Series, that will be demonetized by Apr. 1, 2017. (INQUIRER FILE PHOTO FROM THE BANGKO SENTRAL NG PILIPINAS)

MANILA — The Bangko Sentral ng Pilipinas has given those who still have in their possession old banknotes launched over two decades ago three more months to exchange their old bills before they ultimately lose value.

BSP Deputy Governor Nestor A. Espenilla Jr. told a press briefing Wednesday that the BSP’s Monetary Board—its highest policymaking body—extended to April 1, 2017, the period during which all New Design Series (NDS) bills will be demonetized due to “public clamor for more time to exchange or replace the old banknotes,” which were launched in 1985.

As such, the public can still exchange or replace their NDS banknotes with the BSP or authorized agent banks and financial institutions until March 31, 2017, or three additional months from the earlier deadline of Dec. 31, 2016.

Originally, the BSP scheduled demonetization of the NDS banknotes on Jan. 1.

In April 2017, only the New Generation Currency (NGC), the banknote series launched in 2010, can be used for daily transactions.

According to Espenilla, only a “small amount” of NDS bills were still in circulation.

BSP data showed that as of the end of November, 8.86 percent or 295.7 million pieces of the 3.34 billion banknotes in circulation are NDS banknotes.

In terms of value, the NDS banknotes still in circulation are worth a total of P23.3 billion, comprising a mere 2.4 percent of the P979.9-billion worth in the system.

Both the volume and value of NDS banknotes compared with the total banknotes in circulation already dropped from 21 percent and 20.4 percent, respectively, by the end of 2014, when the demonization process was first announced.

Between 2015 and end-November this year, a total of 416 million pieces of NDS banknotes were withdrawn from the system, equivalent to P161 billion.

Espenilla reminded banks that they must replace old banknotes from those exchanging them even if they were not their customers.

He further warned that banks which would refuse trading the old bills with new ones would be slapped penalties under relevant provisions of the BSP Charter.

Espenilla said that as of Wednesday, the Monetary Board was still studying if it would also extend the deadline for authorized agent banks, treasurers of local government units, clerks of courts and law enforcement agencies, as well as Filipinos living and working abroad.

In the case of banks and local treasurers, the BSP had already given them until March 31 next year to exchange the NDS notes in their possession as of Dec. 31 this year.

NDS banknotes in courts’ custody must be traded until Jan. 31, 2017, while those subject of court cases can still be exchanged within six months after the termination of the corresponding legal cases.

For overseas Filipinos, they are enjoined to register up to P50,000 of old banknotes on the website https://orbs.bsp.gov.ph until Dec. 31, after which they can trade the money within a year from registration date.

As for those in war-torn countries, the BSP had given them until Dec. 31, 2017, to exchange NDS notes, even if they do not register.

The BSP will undertake piece by piece verification of all NDS banknotes that will be submitted for exchange.

Just a few days before Christmas, the BSP also released 27 million pieces of NGC banknotes bearing President Duterte’s signature, worth a total of P8.75 billion.  SFM