BSP: First batch of polymer P1,000 banknotes to arrive in April 2022

The Bangko Sentral ng Pilipinas (BSP) has tapped its Australian counterpart to print polymerized P1,000-denominated banknotes for the test circulation of polymer bills in the country.

At his weekly virtual press chat on Thursday, BSP Governor Benjamin Diokno announced that the first batch of polymer P1,000 banknotes would be delivered in April next year.

“The P1,000 polymerized notes will begin circulating in mid-2022,” Diokno said.

The BSP chief said the Philippine central bank had reached an agreement with the Reserve Bank of Australia and its wholly-owned subsidiary Note Printing Australia for the production of the polymer banknotes.

“Australia is the first country to issue full series polymer banknotes and has produced and supplied polymer banknotes to several countries,” Diokno said.

“As such their advanced technology and expertise in the printing of polymer banknotes will be the best benchmark for our first circulation,” he added.

In October, the BSP announced its plan to test-circulate “a few million” pieces of the polymer P1,000 banknote next year. 

The test circulation of the P1,000 polymer banknotes will run from 2022 to 2025, according to BSP Deputy Governor Mamerto Tangonan.

“We’re authorized to release 500 million pieces of P1,000 polymerized banknotes,” said Tangonan, chief of the BSP Payments and Currency Management Sector.

The BSP deputy governor explained why the central bank decided to test the circulation of polymer banknotes on the P1,000 bill.

“First, it is the currency that is most widely circulated. Currently about 30% of all currencies out there in circulation are P1,000 banknotes,” Tangonan said.

“Second reason, it is the most frequently counterfeited currency,” he added.

The P1,000 polymer banknotes will have a similar design to the ones already in circulation, but the material will be like the banknotes used in countries such as Australia, Canada, Mexico, New Zealand, and the United Kingdom.

The BSP is pushing for the adoption of polymer-based banknotes, as these are said to be more hygienic and sanitized, more sustainable and environmentally friendly, more durable, and more cost effective.

The polymer banknotes will also have additional security features which will make them difficult to counterfeit.

Citing the experience of other countries, Tangonan said polymer banknotes could withstand extreme temperatures and could last 2.5 to 4 times longer than paper money.

These are also water- and dirt-resistant, more conducive to wet market conditions, and could reduce production costs by 25%.

“The test will help us determine the effects of polymerization on hygiene and public health, environmental sustainability, as well as the lifespan, durability, and counterfeiting rates of our money,” the BSP previously said.

“It will also allow us to collect stakeholder feedback and observe changes in currency handling behavior,” it added.

According to Tangonan, this will have a “minimal” impact on the local industry, as the test will only be for the P1,000 denomination. This would translate to 0.2% to 0.4% hit on the farming jobs, and 0.1% to 0.2% to total abaca exports.

“We are cognizant even if we say the impact is minimal, we are cognizant of it and we are appropriately finding alternative markets for the abaca fiber,” he said.

The BSP has already conducted consultations with various polymer banknote producers, and other central banks on their actual experiences with polymer banknotes. — VBL, GMA News