According to him, the coins will co-exist with the currently circulating P20 NGC banknote, which will be removed from the circulation through natural attrition.
The Bangko Sentral ng Pilipinas (BSP) on Tuesday unveiled the much awaited P20 coin, which is circulated under the BSP’s New Generation Currency (NGC) coin series.
“The use of the P20 coin — which is now the highest denomination in the NGC Coin Series launched in 2018 — is more cost-efficient to produce as it will have a longer circulation life than a P20 banknote,” the BSP said.
“According to a study by the University of the Philippines, the P20 banknote is the most-used denomination for payments across the country. As a result, paper peso bills easily become unfit for circulation and returned to the BSP for replacement,” it added.
BSP Governor Benjamin Diokno expressed his satisfaction with the new coins, especially noting the long-term savings the shift from banknote production to coins generate.
Three decades after the Marcopper mining disaster devastated Marinduque’s waterways, the province is again pressing the…
Housing is probably the biggest issue affecting people the world over.
Malacañang on Monday called for a more thorough investigation into the questioned flood control projects in Taguig…
The defense on Monday backed the move by senator-judges to exclude a prosecution witness who testified on the firearms…
“It costs us P2 for the bill that usually lasts for only 6 months whereas the coin cost is only P10 but it will last for 10 to 15 years,” Diokno said.
According to him, the coins will co-exist with the currently circulating P20 NGC banknote, which will be removed from the circulation through natural attrition.
“Our estimate is that (the P20 banknote) will last until 2021,” he quickly added.
Despite the higher production cost than its banknote counterpart, the new P20 coin is more durable, lasting 40 to 60 times its predecessor.
Moreover, the enhanced version of the P5 coin was launched on the same day, eliminating the issue of confusion among other coins with its new features.
“The BSP is also introducing the enhanced 5-Piso NGC coin with nine sides to make it more distinct from other denominations in the NGC Coin Series,” the BSP chief said.
“This reaffirms BSP’s commitment to not only uphold the highest standard of excellence, but also listen to the public’s observations as it endeavors to bring central banking closer to the people,” he added.
Diokno said they fused some 500,000 pieces of P20 coins as well as millions of P5 coins in the current circulation for this month. Full scale production of the new coins will start in the first quarter 2020.
