The Bangko Sentral ng Pilipinas (BSP) has assured the Filipino public that there is adequate supply of banknotes and coins to meet the higher demand for currency – both digital and cold cash -- during the holiday season.

In a statement Wednesday, Dec. 11, the BSP said it is producing enough banknotes and coins to meet the higher requirement from the banking sector “amid the expected surge in currency demand during the Christmas season.”

Exchanging old banknotes and coins, including unfit currency, for newer or crisp physical money is free of charge. Based on BSP description, unfit banknotes are considered soiled, limp, stained, with obvious writings, and with faded print. Unfit coins, on the other hand, have markings and signs of corrosion.

“Holidays usually usher in an increase in demand for new and clean banknotes and coins as Filipinos traditionally give cash gifts or aguinaldo to their godchildren, families, and friends,” according to the BSP.

For the past five years, the BSP has been encouraging the public to use e-aguinaldo or cash gifts sent electronically instead of giving physical cash.

Meanwhile, the BSP does print more banknotes around Christmas time because the beneficiaries of cash gifts prefer fresh or crisp bills.

Based on historical data, currency demand will start to rise in October until December. In demand are usually P1,000, P100, and P50 banknotes. Coins such as P1 and 25-sentimos also have increased demand.

The promotion of e-aguinaldo is part of BSP’s push for the wider adoption of digital payments, financial inclusion and an efficient flow of funds.

Digital channels include interbank fund transfers through InstaPay and PESONet; electronic money issuers that are more commonly known as e-wallets; and QR Ph, which entails code scanning and offers consumers faster, easier, and cheaper payment options.

As of the end of 2023, 52.8 percent of the country’s total retail transaction volume have been converted into digital form or e-money.