By January 1 next year, the central bank will start the process to demonetize or replace old banknotes or the New Design Series (NDS) that have been in circulation for almost three decades.
In a news briefing on Monday, Bangko Sentral ng Pilipinas (BSP) said the old banknotes consists 5-, 10-, 20-, 50-, 100-, 200-, 500-, and 1,000-peso denominations. The central bank first issued these banknotes on June 12, 1985.
The BSP said the public may continue to use the old banknotes up to December 31, 2015. Thereafter, the old banknotes will no longer be accepted for payment transactions.
From January 1, 2015 to December 31, 2016, the public may still exchange their old banknotes with the New Generation Currency (NGC) Series at full face value.
The public may also opt to exchange their old banknotes with the BSP or any of its regional offices/branches nationwide.
Filipinos abroad who possess old banknotes that could not be exchanged within the prescribed period may register online starting October 1, 2015 to December 31, 2015 through the BSP website. These old banknotes may be exchanged with the BSP within one year from the date of registration.
Starting January 1, 2017, the old banknotes that have not been exchanged shall no longer have any monetary value, and are considered demonetized.
The demonetization of the old banknotes will result in the circulation of a single currency series in the country—the NGC series, according to BSP Deputy Governor Diwa Guinigundo.
“The NGC banknotes which were issued on December 16, 2010 use new and enhanced security features to protect the safety of the public against counterfeiters,” he said.
As of November 2014, according to Guinigundo, there were 729 million pieces of old banknotes in circulation or about P192 billion in value.