BSP: “All denominations of the BSP Coin Series and the New Generation Currency Coin Series are legal tender”
BSP — The Bangko Sentral ng Pilipinas recently reminded the public to use and accept coins for payments.
On Wednesday, the central bank said coins that are currently in circulation are legal tender and should be accepted as payments for services and goods.
“All denominations of the BSP Coin Series and the New Generation Currency Coin Series are legal tender and can be used as payment for goods and services,” BSP said in an advisory. “The BSP encourages the public to continue using their coins as payment for goods and services.“
The central bank said that the reminder was meant to boost efforts to promote the recirculation of coins since the inefficient circulation hampered its use as a medium of exchange and may cause artificial shortages.
In addition, the central bank said that efficient coin circulation results in lower production costs due to minting of fewer coins.
Under BSP Circular No. 573, Series of 2006, 1-piso, 5-piso, and 10-piso coins can be used as payment for amounts not exceeding PHP 1,000 while the 25-sentimo coins and those of lower denomination for amounts not exceeding PHP 100.
For the 20-piso coins, the central bank said it is currently updating the circular to set its limit.
READ ALSO: BSP Appeals To Public Not To Take “Undue Advantage” of Changing Market Conditions
The central bank is the sole issuer of local currency and they have to continuously provide responsive, undisrupted, and strategic currency services throughout the entire cash cycle, which begins with forecasting demand.
BSP has been reviewing and analyzing the currency denominational structure since last year as the Philippines transitions into a cash-lite and non-coin society.
The seven coins produced by the central bank are the 1-sentimo, 5-sentimo, 25-sentimo, 1-piso, 5-piso, 10-piso and 20-piso. Based on the report, the 10-sentimo has been removed when the New Generation Currency (NGC) coins were re-launched in 2018 but it wasn’t demonetized.
Both the coin and banknote version of the 20-piso will continue to co-exist until the central bank rans out of materials for the 20-piso banknote, but to date, the central bank has not called for its demonetization yet.
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