The BSP advised the public to exchange or deposit “unfit” coins.
BSP — As part of the central bank’s campaign to promote and improve its use and circulation, the Bangko Sentral ng Pilipinas advised the public to deposit or exchange “unfit” coins.
On Wednesday, BSP Governor Benjamin E. Diokno said that proper handling of coins “helps maintain their structural integrity”, which also promotes vigilance against their unlawful use.
Coins considered “unfit” are those that are bent or twisted out of shape, corroded, defaced, and its weight reduced due to wear and tear.
The central bank also said that the public may deposit or exchange “unfit” coins, while coins of doubtful authenticity may be surrendered to banks for BSP inspection.
According to the central bank, said coins will be withdrawn from general circulation if deemed unfit.
The central bank has a Coin Recirculation Program and a Clean Note and Coin Policy.
Part of the central bank’s regular advisory is to remind the public that willful defacement, burning, mutilation, or destruction of coins may be “subject to imprisonment of up to five years” plus a fine of PHP 20,000.
“Since the production and continuous circulation of fit and high-quality coins are a public investment, all are enjoined to use coins, whenever appropriate, to pay for goods and services; exchange or deposit unused coins in banks instead of keeping them in storage; and maintain the cleanliness of coins,” the central bank said.
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Last January, the central bank said that it is proposing to criminalize the stockpiling of large amounts of coins and to impose a more rigid package of penalties and sanctions against currency counterfeiting.
The central bank has been calling for a strong law that will penalize coin hoarding in the Philippines. In the absence of a law, the central bank utilizes its Coin Recirculation Program in order to encourage the public to refrain from unnecessarily accumulating coins.
Coin hoarding, according to the central bank, results in the inefficient circulation of coins and prevents their primary use as a medium of exchange.
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