Less than 10 percent of banknotes currently in circulation comprise New Design Series (NDS) bills that can no longer by used for purchases by yearend, the central bank said on Thursday.
In value terms, this means that some P67 billion worth of the three-decade old series need to be exchanged for New Generation Currency (NGC) notes launched in 2010.
A total of P790 billion in banknotes are currently in circulation, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said, 8.51 percent of which are NDS bills.
In volume terms, 432 million pieces of NDS bills need to be exchanged, equivalent to 15.89 percent of the 2.718 trillion pieces in circulation.
At the end of last year, NDS notes accounted for 20.41 percent or P184 billion. By volume, the share was 20.98 percent or 711 million pieces out of the total 3.392 trillion in circulation.
The BSP is currently undertaking the demonetization of banknotes that are more than five years old. NDS notes can still be used for daily transactions up to the end of the year.
Next year, NDS notes can still be exchanged at authorized financial institutions for the NGC series but will become worthless beginning 2017.
Government institutions holding old banknotes that cannot be exchanged during the prescribed period, such as money being used as evidence in a lawsuit, will have to request the BSP Cash Department in writing, also within the period of exchange, for a special exchange arrangement.
Overseas Filipinos with old banknotes that also cannot be exchanged within the prescribed period, can sign up via the BSP website from October 1, 2016 to December 31, 2016, to arrange for an exchange within one year from registration.
Color revision to 100-piso bill
In another development, Guinigundo announced that the BSP would be releasing a version of the P100 NGC note with a revised color scheme to make it easier to distinguish from the P1,000 note.
“The BSP decided to produce starting this year a different shade of violet for the 100-piso bill. Starting January 2016 we will release a much darker shade of the violet 100-piso bill,” he said.
“But we advise the general public not to base their payments or settlement of obligations solely on the color of the banknotes … to avoid confusion,” he added.