Do you know that BSP is the sole institution to issue currency within Philippine Territory as mandated by the law. Obviously, paper money and coins are legal tender under circulation in the Philippines economy.
It would be good to know and understand some facts about our Philippine money because we are using this in our daily activities. Be surprised in the information included herein.
Ten Facts about Philippine Currency Notes and Coins:
1. Bangko Sentral ng Pilipinas can’t issue banknotes and coins more than its total assets.
As of December 31, 2014, the total asset of BSP is equivalent to P4,087,510,384,483. (P4Trillion)
2. Do you know how much money is in circulation?
a. There are about 23.65 billion pieces of coins equivalent to P26.997 billion as of September 2015.
b. There are about 2.72 billion pieces of notes valued at P790.34B as of September 2015
Perhaps, we can say that the Philippine market is valued at P817.337B by using the money issued in circulation as basis.
3. Do you know why BSP is placing new generation currency (new design)?
This is to preserve the currency integrity. Though of course, this is for improvement purposes to protect currency against counterfeits, by making it costly and difficult to produce for those counterfeiters.
4. Do you know that periodic changing of the currency DESIGN/FEATURES is a global practice of different central banks? Thus, BSP is adopting this practice as well.
5. Do you know that there is no actual shortage of coins?
P26.796 Billion of coins is in circulation as of September 2015. Perceived shortage of coins occur because Filipinos love to keep coins in piggy banks, alkansyang kawayan, jars, and other means of savings – this is one of the reasons.
6. Do you know that there is an increased demand for 1-piso coins due to use of “Automatic Tubig Machine”?
Seems very funny but this is based on the investigation conducted by Bangko Sentral ng Pilipinas. Of course the major concerns in shortage of coins are:
a. Smuggling of 1-piso coins and
b. Hoarding for melting and shipment to other countries
7. Do you know that banks are required not to re-circulate unfit currency notes and coins but may be presented for exchange to or deposited with any bank?
8. Do you know that banks are required to accept mutilated currency notes and coins which the banks will transmit to the BSP office but you can be charge for handling fees related to the handling/transporting this notes and coins?
9. Do you know that it is prohibited to write or put marks in banknotes?
There is a law that prohibits and penalizes the act of currency defacement, mutilation, burning, tearing or any manner showing act of willful/intentional mutilation.
10. Do you know that we, common citizen or individual, have a very difficult or even impossible reporting process about counterfeit money? Here it is:
a. The recipient has to issue temporary receipt to the owner/holder indicating the name, address, community tax certificate or the passport number, if foreigner.
b. The recipient has to indicate the date of receipt, denomination, serial number in the note or series in case of coins.
c. The recipient has to require the owner/holder to countersign the receipt; in case of refusal, state the reason therein.
d. The recipient has to forward the counterfeit money for examination/appropriate action within five (5) working days after the receipt to the BSP Office in Quezon City.
Even superheroes can’t do this. This process is impossible for every Juan or common citizen of the Philippine Republic. This process is near to possible if the counterfeiter is insane enough to give his name, address, and sign to the document.
What information did you get?
1. That the Philippine economy has still a lot of notes and coins to issue?
2. That the Philippine is just a little bit richer to the richest man in the world?
3. That the Philippine has so many potential to become the richest country in the world?
4. That Filipinos still prefer to keep their money in jars, piggy banks, alkansya etc?
5. That the Philippine has unreasonable due process for those individual who received counterfeit/fake money? In effect, counterfeiter is well protected because of this long process to be followed.
Source: Bangko Sentral ng Pilipinas