P685.6B worth of banknotes retired by BSP in 2024
BAGUIO CITY — A total of P685.6 billion worth of banknotes were retired by the Bangko Sentral ng Pilipinas (BSP) in 2024 as these were no longer fit for circulation, the central bank reported Friday.
According to BSP Assistant Governor Rosabel Guerrero, the retired banknotes in 2024 reflect an 11.3% decline from the 2023 level, given the wider circulation of the P1,000 polymer banknote.
“(It’s) partly because of the issuance of the polymer which started in 2022, that has a longer lifespan already, so we don’t need to retire a lot of the currency,” she told reporters.
To recall, the P1,000-polymer banknote was first revealed to the public in December 2021, and was released into circulation in April 2022.
The central bank earlier said that polymer banknotes are “cleaner” as they are less likely to get damaged due to water, oil, and dirt, and are “stronger” as they have a lifespan of as long as 7.5 years versus the paper banknotes’ 1.5 years.
The BSP in December 2024 also released into circulation the polymer banknote versions of the P500, P100, and P50 denominations, which showcase images of native and protected species, as well as local weave designs.
Under its operations, the BSP retires or removes from circulation banknotes that are deemed unfit, mutilated, and those that have already been demonetized.
Unfit banknotes are those that are already limped, soiled, with obvious writings or markings, with stains, with faded print, and/or with crumples or heavy folds. These can be exchanged with fit banknotes with any bank in the country.
Meanwhile, mutilated banknotes are those with adhesives or staple wires; charred or decayed; with tears, holes, or missing parts; and those that have split substrate. These can be submitted to any local lender for analysis of the BSP.
While the retirement of banknotes declined, the BSP reported an increase in coins defaced with 157.8 metric tons in 2024, marking a 59.1% increase from the previous year.
The central bank also saw a 12.5% increase in banknote withdrawals of banks in terms of value to P1.5 trillion, while coin withdrawals declined by 3.4% to P9.8 billion.
In terms of deposits of banks, banknotes increased by 0.2% to P1.2 trillion, while coins grew by 26.0% to P1.1 billion. — RSJ, GMA Integrated News