Bangko Sentral ng Pilipinas (BSP) encourages individuals who still have old bank notes or peso bills (New Denomination Series ) in their possession to exchange these with the New Generation Currency (NGC) Series in banks until December 31, 2016 only.
Old bank notes that have not been exchanged or surrendered will be demonetized or will no longer have monetary value starting January 1, 2017, said BSP La Union Regional Director Rogel Joseph del Rosario during the kapihan media forum here last week.
Del Rosario explained that demonetization is the process by which a central bank removes the monetary value of a legal tender currency it issued and can no longer be accepted as payment for goods and services.
The BSP is demonetizing the old banknote series which have been in circulation for 30 years as a way to safeguard the integrity of our currency, he said.
He informed that there are still remaining 10 percent of old bank notes that have not been exchanged or surrendered.
The BSP also clarified that there is no actual shortage of coins as there are 25 billion pieces of coins in circulation. The problem is that some people keep coins idle in piggy banks, or jars and not re-circulate them.
Del Rosario said “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 law also prohibits business establishments from giving customers candies as substitute for their change.
Violators will be subjected to penalties, and the gravity of the penalties will depend on the frequency of the offense, he said.
Del Rosario urged the public to use their coins in paying for their goods or bills. (JDP/JBZ- PIA CAR)