MANILA — The Bangko Sentral ng Pilipinas (BSP) stated that folded P1,000 polymer banknotes can still be circulated and accepted for payments.
“Retailers and banks should accept them for day-to-day payment transactions,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.
In an advisory, the BSP addressed concerns raised on social media regarding non-acceptance by some establishments of folded P1,000 polymer banknotes.
According to the guidelines on the proper handling of polymer banknotes issued by the BSP, the P1,000 polymer banknotes should be kept in wallets, particularly typical bi-fold wallets, where they fit properly.
Additionally, the BSP asked the public to keep paper and polymer banknotes clean and use them as payment for goods and services.
It issued the guidelines to raise public awareness on the proper use of polymer and paper banknotes, safeguard their integrity and prolong their lifespan.
“If an individual is doubtful on the value and/or authenticity of a banknote, he or she is encouraged to go to any bank for assistance. The bank will refer the banknote to the BSP for examination,” the BSP said in the advisory.
As part of a limited circulation test this year, the central bank is initially issuing 10 million pieces of redesigned P1,000 bills made of polymer.
The test would help determine the effects of polymerization on hygiene and public health amid the COVID pandemic, environmental sustainability as well as the lifespan, durability and counterfeiting rates.
The BSP intends to collect feedback from stakeholders and monitor changes in currency handling behavior.
Due to their smooth and non-absorptive surfaces, polymer banknotes are cleaner and less susceptible to viral and bacterial transmission.
The resilience against extreme temperatures and resistance against water and dirt make polymer notes highly durable.
They have been found to last 2.5 to four times longer than paper money, more than offsetting the initial increase in production cost.
According to studies, polymer notes are more cost-effective than paper notes, resulting in reduced note issue costs.
Based on the experiences of other central banks, expenses on banknote issuance could be reduced by 40 percent to 60 percent.
Polymer banknotes also have smaller carbon footprint and lower water and energy usage.
Polymer banknotes can have more than one life cycle due to its recyclability.
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