La Union, Philippines — The central bank of the Republic of the Philippines, Bangko Sentral ng Pilipinas (BSP), encourages the people in the country who still have the old bank notes or peso bills in their possession to exchange them with the New Generation Currency (NGC) Series in banks until December 31, 2016 only.
The old bank notes of the Philippines that have not been exchanged or surrendered will be demonetized. Meaning, it will no longer have monetary value starting on January 1, 2017, said BSP La Union Regional Director Rogel Joseph del Rosario during the “kapihan” media forum last week.
The BSP La Union Regional Director Del Rosario stressed out that demonetization is the process by which a the central bank of the Philippines removes the monetary value of a legal tender currency or the peso bill it issued and it can no longer be accepted as payment for goods and services.
The Bangko Sentral ng Pilipinas is demonetizing the old banknote series which have been circulating across the country for about 30 years as a way to safeguard the integrity of the Philippines peso currency, Del Rosario said.
Del Rosario noted that there are still remaining 10 percent of aging banknotes that have not been exchanged or surrendered in the banks.
The country’s central bank also explained that there is no actual shortage of peso coins as there are 25 billion pieces of coins circulating in the country. The main problem is that some individuals are keeping the coins idle in piggy banks, or jars and not being re-circulate them.
Del Rosario stated that the “consumers should know that we now have a law, the No Shortchanging Act or Republic Act 10909, which protects consumers of their right to receive exact change”. The Philippine law also prohibits business establishments from exchanging or giving the customers candies as substitute for their change.
The violators will be subjected to penalties, and the gravity of the penalties will depend on the frequency of the offense, Del Rosario added. — TheVader.com