As of January 1, 2017, Section 57 of Republic Act No. 7653 (the New Central Bank Act) stipulates that all old currency will be official demonetized, ushering in the “new generation” currency that will regulate a single currency series for the nation.
The release to the public of the new design series (NDS) of currency will render all currency from the previous series – which have been in circulation for almost 30 years – void of any monetary value. From January 1, 2016, up until December 31 of the same year, the general public will still be permitted to purchase goods and services with the old currency, however, it will be required that the previous series be exchanged at full face value with an authorized financial institution prior to January 1, 2017.
The specifics of the taken measures, according to the Bangko Sentral ng Pilipinas (BSP) are as follows:
“SECTION 57. Retirement of Old Notes and Coins. – The Bangko Sentral may call in for replacement notes of any series or denomination which are more than five (5) years old and coins which are more than (10) years old.
Notes and coins called in for replacement in accordance with this provision shall remain legal tender for a period of one (1) year from the date of call. After this period, they shall cease to be legal tender but during the following year, or for such longer period as the Monetary Board may determine, they may be exchanged at par and without charge in the Bangko Sentral and by agents duly authorized by the Bangko Sentral for this purpose. After the expiration of this latter period, the notes and coins which have not been exchanged shall cease to be a liability of the Bangko Sentral and shall be demonetized. The Bangko Sentral shall also demonetize all notes and coins which have been called in and replaced.”
Overseas Filipino workers (OFWs) who are unable to return home during the period of transition are required to register online with the BSP so that they may exchange their old currency, which is permissible within one year from the date of registration.
The primary purpose behind the initiative, as stated by the BSP, is to safeguard against counterfeiting, which is recognized as having become a genuine issue in the Philippines in recent years.