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[av_heading heading=’Swapping old peso bills with new ends – BSP ‘ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
BY CAROLYN JANE ABELLO
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ILOILO City – The period for exchanging the Philippine peso New Design Series or NDS Banknotes (old banknotes) for the New Generation Currency (NGC) Banknotes ended yesterday, Dec. 29.
The deadline was non-extendable.
The Bangko Sentral ng Pilipinas (BSP) already extended the deadline thrice. The first deadline was set on Dec. 31, 2016. This was extended to March 31, 2017, and then to June 30, 2017 due to insistent public demand.
According to the Iloilo BSP deputy director Joanne Marie Castelo, the old banknotes have now lost their value.
Demonetization is the process by which a central bank removes the monetary value of a legal tender currency it issues. Demonetized currencies are no longer accepted as payment for goods and services.
BSP’s Iloilo branch catered to those who exchanged their old banknotes with the NGC banknotes from 9 a.m. to 2 p.m. yesterday. It suspended its other operations just to accommodate people.
The BSP demonetized the old banknote series as a way to safeguard the integrity of the Philippine peso.
As a matter of practice, central banks around the world change the design of their currencies that have been in circulation for over 10 years. In the case of the Philippines, the old banknote series, introduced in 1985 or 30 years ago, was replaced by the NGC series which was launched in 2010.
The process of demonetization is widely practiced throughout the world, though reasons for demonetizing can be varied. Among the common reasons are the following:
* prevention of counterfeiting
* benchmarking with other countries
* change in the type or form of government
* change in the type of currency as part of political or social reform
* redefining the value of money in response to hyperinflation
* shift to a single design series of currency in countries where more than one series are in circulation
Information on the NDS demonetization process and relevant dates was disseminated, repeatedly broadcasted and published in various media outlets (newspapers, radio and television), shared on the BSP’s website, shown on videos played by cinemas, contained in materials, brochures and posters displayed by retailers in their establishments nationwide, and subject of face-to-face public information campaigns across the country for the past three years./PN
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