The BSP was assuring the public of sufficient supply of banknotes for the holidays.
BSP — The Bangko Sentral ng Pilipinas was assuring the public that there’s an adequate supply of new coins and banknotes in anticipation of the higher currency demand during the holidays.
According to BSP Governor Benjamin Diokno, the peak of currency demand started in October and continued to increase until December of every year.
“There will be no shortage of new banknotes in the Yule season. As in previous years and to support seasonal demand, 40 percent and 50 percent of the total volume of banknotes and coins, respectively, will be serviced in the fourth quarter of the year,” Diokno said.
Historically, there’s greater demand for denominations of PHP 1,000, PHP 100, and PHP 20 banknotes as well as PHP 20, PHP 5, and PHP 1 coins during the holiday season.
Likewise, the Bangko Sentral ng Pilipinas encouraged the public to practice proper handling of coins and banknotes in order to extend the life span of coins and banknotes, thereby reducing the cost of currency production.
READ ALSO: BSP To Start Testing Polymer PHP 1,000 Banknotes In 2022
Also, the BSP advised the public to exchange their unfit coins and banknotes for new ones with their banks.
Diokno has championed the Philippines’ shift into a cash-lite from a cash-heavy economy under the central bank’s Digital Payments Transformation Roadmap.
Under the roadmap, the Bangko Sentral ng Pilipinas has committed to shift 50% of total retail transactions to digital channels and to increase the number of Filipino adults with bank accounts to 70% by 2023.
Diokno said that digital wallets offered an efficient, safe, and convenient way to transfer funds to friends and family during the season of giving, adding that the use of digital money was highly recommended in order to reduce virus transmission amidst the ongoing health crisis.
BSP Deputy Governor Mamerto Tangonan earlier announced the revival of a plan to use plastic or polymer to print banknotes that were more hygienic amidst the pandemic, more environment friendly as well as more durable and secure than the cotton and abaca fiber composite being currently used.
According to Tangonan, the central bank was preparing for a limited circulation test of a polymer version of a few millions of PHP 1,000 in the first half of next year in order to assess whether the benefits claimed by other central banks hold true under Philippine conditions.
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