26/08/2015: BSP announces the replacement process of old banknotes with New Generation Currency banknotes
The Bangko Sentral ng Pilipinas (BSP) began the demonetization process on 1 January 2015 for the old banknotes (New Design Series, NDS) as part of its objective to preserve the integrity of Philippine currency. This move is in line with the provisions of Section 57 of Republic Act No. 7653, otherwise known as the New Central Bank Act, which authorizes the BSP to replace banknotes that are more than 5 years old. The NDS banknotes have been in circulation for almost three decades (Annex 1).
The public is advised of the following important information:
- The public may continue to use the NDS banknotes up to 31 December 2015 in paying and buying of goods and services and other business or financial transactions requiring the use of cash. Thereafter, the NDS banknotes will no longer be accepted for payment transactions;
- From 1 January 2015 to 31 December 2016, the public may exchange with authorized financial institutions, namely universal and commercial banks, thrift banks, and rural as well as cooperative banks, their NDS banknotes with the New Generation Currency (NGC) Series at full face value, without charge (Annex 2). The public may also opt to exchange NDS banknotes with the BSP or any of its regional offices/branches around the Philippines (Annex 3);
- Government institutions holding in trust NDS series which could not be exchanged during the prescribed period, such as banknotes used as evidence in a litigation case, will have to request the BSP Cash Department in writing, within the period of exchange, for a special exchange arrangement;
- For Overseas Filipinos (OFs) abroad, who have in their possession NDS banknotes which could not be exchanged within the prescribed period, they may register online starting 1 October 2016 to 31 December 2016 through the BSP Website. These NDS banknotes may be exchanged with the BSP within one (1) year from date of registration; and
- Starting 1 January 2017, NDS banknotes that have not been exchanged shall no longer have any monetary value, and are considered demonetized.
The demonetization of the NDS will result in the circulation of a single currency series in the country – the NGC Series. The NGC banknotes which were issued on 16 December 2010 use new and enhanced security features to protect the safety of the public against counterfeiters.