BSP extends deadline 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)

The Bangko Sentral ng Pilipinas (BSP) 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 Gov. Nestor A. Espenilla Jr. told a press briefing yesterday that the BSP’s Monetary Board—its highest policymaking body—extended to April 1 next year 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.

Thus, 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 this year.

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

By April next year, 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 end-November, 8.86 percent or 295.7 million pieces of the 3.34 billion banknotes in circulation were NDS banknotes.

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

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

He warned that banks that would refuse to exchange the old bills with new ones shall be slapped with penalties under relevant provisions of the BSP Charter.