The Bangko Sentral ng Pilipinas (BSP) is currently reviewing how much the public can use the P20 coin as legal tender and if it will be allowed to exceed P1,000 as payment which is the current limit for the P1, P5 and P10 coins.
Under BSP Circular No. 537 which was adopted in 2006, the use of coins as payment have limits. For example, the P1, P5 and P10 coins will be considered as legal tender in amounts not exceeding P1,000. This means the public can pay up to P1,000 in coins using these three coin denominations.
As for 25-sentimo coins and those of lower denominations such as 1-sentimo, 5-sentimo and 10-sentimo, the legal tender limit is P100.
“The BSP is currently updating the said circular on the legal tender limit for the 20-piso coin,” said the BSP in an advisory on Wednesday, Oct. 26.
In the same advisory, the BSP is again calling on the public that coins in circulation should be accepted as payment for goods and services or change in cash transactions.
“This advisory is in line with the BSP’s broader efforts to promote the efficient recirculation of coins. Inefficient circulation of coins hampers the use of coins as a medium of exchange and may also cause artificial coin shortages in specific locations. On the other hand, efficient coin circulation results in lower production costs due to the minting of fewer coins,” said the BSP.
Since June this year, the BSP has been looking into the lower-denominated currencies both banknotes and coins that have low demand or may have reduced public usage as they improve their currency forecasting capabilities.
The BSP is always improving on the usefulness of its currency forecasting especially with the rise of digitalization and the need for a more cost-effective currency production.
To strengthen its currency forecasting methods and capabilities, the BSP leverages on rapid technological advancements in the global payment system.
Besides the periodic reviews of its forecasting models, the BSP also conducts specialized learning and development programs on currency forecasting and mandatory econometrics training for its forecasting team.
The BSP is the sole issuer of Philippine currency and they have to continuously provide undisrupted, responsive, and strategic currency services throughout the entire cash cycle, which begins with forecasting demand.
Since last year, the BSP has been analyzing and reviewing the currency denominational structure as the country transitions into a cash-lite and non-coin society.
At the moment, the BSP prints five banknotes denominations and mints seven coin denominations.
The seven coins produced by the BSP are the 1-sentimo, 5-sentimo, 25-sentimo, 1-piso, 5-piso, 10-piso and 20-piso. The 10-sentimo has been removed when the New Generation Currency coins were re-launched in 2018, but it was not demonetized.
Both the banknote and coin version of the P20 will continue to co-exist until the BSP rans out of materials for the P20 banknote, but to date, the BSP has not called for its demonetization yet. The five banknotes remain as the P50, P100, P200, P500 and P1,000.
Meantime, since April this year, the BSP has released 10 million of polymer P1,000 banknotes. For the rest of 2022, the BSP will circulate 158.4 million of polymer money. Next year, the BSP said it will release a larger volume of polymer banknotes amounting to 331.6 million.