Demonetization of the old coins issued by the defunct Central Bank of the Philippines

CIRCULAR LETTER Series of 1997

TO : All Banks and Non-Bank Financial Intermediaries with Quasi-Banking Functions

In order to attain the highest level of public awareness, banks/NBQBs are enjoined to post in conspicuous places in all their branches/offices the attached "Notice to the Public" regarding the demonetization of the old coins issued by the defunct Central Bank of the Philippines.

ALBERTO V. REYES Deputy Governor

NOTICE TO THE PUBLIC

Old coins issued by the defunct Central Bank of the Philippines may still be exchanged with the new Bangko Sentral coins for a period of one year beginning January 2, 1997. The coins may therefore be exchanged with the Bangko Sentral ng Pilipinas, its branches and with any bank until January 2, 1998. Under Section 57 of Republic Act No. 7653 (The New Central Bank Act). "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."

In September 1994, the Bangko Sentral ng Pilipinas (BSP) announced the phase-out of the old coins and the issuance of a new set of coins. This announcement was published in almost all newspapers of general circulation. During the same month, consultative meetings with representatives of various organizations were conducted; the BSP Cash Department also conducted lectures and seminars among bank tellers and cashiers all over the country. In the months of January and February 1995 several announcements were again made in all newspapers. Last October 23, 1996, full-page ads were placed in four leading newspapers explaining the retirement of the old coins and their replacement of the new Bangko Sentral coins.

Contrary to perceptions, the old coins may still be exchanged until January 2, 1998 at par and without charge with the Bangko Sentral ng Pilipinas, its branches and with all banks.

The new coins may be distinguished easily from the old coins in that, except for the 5-centavo which has a hole in the middle, all the rest have the new logo of the Bangko Sentral ng Pilipinas, as shown below: