Metro Manila (CNN Philippines, June 10) – The Bangko Sentral ng Pilipinas (BSP) has warned against a possible proliferation of counterfeit money amid its plan to print up to half a billion new ₱1,000 polymer banknotes.
BSP’s goal is to have 500 million polymer notes in circulation by 2023 that should slowly replace the ₱1,000 paper banknotes, which in the process, will cut printing costs.
Polymers are said to be non-porous, 100% water-proof, and do not easily tear.
The Central Bank has so far introduced 10 million ₱1,000 polymer bills since the first salvo in April.
The monetary authority said it has yet to conclude its cost-benefit analysis with the introduction of polymer banknotes, while citing the experience of central banks elsewhere.
“England reports a decrease of 25% in production cost. New Zealand saw a decrease of 58% in production note issuance cost. Australia reports 1 billion dollars of cost savings. So optimistic tayo [So we are optimistic],” BSP Senior Currency Specialist Xyza Jane Templonuevo told journalists attending a BSP-initiated seminar on Friday.
Existing laws only penalize those who are involved in counterfeiting banknotes, with the Philippines yet to mint a law that will give victims a clear legal remedy.
“Counterfeits are not money. So they do not have value, therefore they cannot be exchanged. That’s why a person receiving a counterfeit note will take a loss,” Templonuevo explained.
Almost 8 out of a million are fake
BSP data shows 7.9 banknotes out of a million are counterfeits, or in central bank parlance “parts per million (ppm)”, which is way below the 50 ppm red flag used internationally.
The Central Bank sums up in three words how to tell if a bank note is genuine: Feel, Look, Tilt.
Feel its texture – polymer is smooth.
Look for a clear window – the side with the sampaguita icon with embossed lines will have the letters BSP.
Check for metallic features that give the banknote that kind of luster and rainbow colors.
To find the shadow thread, tilt the banknote.
Demonetization
The old-series ₱1,000 paper notes are still good as legal tender, the money authority assured.
Bank officials say there is no clear timetable yet when such paper notes will be demonetized.
Central Bank Governor Ben Diokno in April had signaled that the demonetization would be in sync with the expiration of his term with the BSP next year. However, Diokno is set to drop his BSP post to become Finance secretary in July.
December 2022 is the deadline for banks to recalibrate their ATM and deposit machines in Metro Manila. For those oustide the capital, it’s by mid-2023. Thus, the new polymer banknotes will be machine-readable.
