The Monetary Board, the policy-setting body of Bangko Sentral ng Pilipinas, extended by three months the deadline for the exchange or replacement of old banknotes with the New Generation Currency bills, from Dec. 31, 2016 to March 31, 2017.
Bangko Sentral Deputy Governor Nestor Espenilla Jr. said in a news briefing the extension was the board’s answer to the “public’s clamor for more time to exchange or replace the old banknotes” which were in circulation since 1985.
Espenilla did not specify which particular sectors were clamoring for the extension of the replacement deadline.
“Most of the NDS currencies have already been replaced and a small amount is still circulating in the system,” Espenilla said.
Latest data showed that as of Nov. 30, about 8.86 percent or 295.7 million pieces of the 3.34 billion banknotes in circulation were NDS or old banknotes. In value terms, 2.4 percent or P23.3 billion of the P979.9 billion banknotes in circulation were NDS bills.
By contrast, during the announcement of the NDS demonetization process in end-December 2014, 21 percent of banknotes in circulation were old bills. In value terms, 20.4 percent or P184.3 billion were NDS.
Espenilla also reminded banks that they were required to exchange or replace old banknotes, whether these were from their customers or not.
“Banks should fulfill their responsibility and accept the old banknotes,” he said, adding that Bangko Sentral would apply the relevant provisions of the BSP Charter to those banks found declining to accept the old banknotes.
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