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Philippines: BSP to deface unfit coins
TO maintain the integrity of the Philippine currency, the Bangko Sentral ng Pilipinas (BSP) retired 519.93 metric tons of unfit, demonetized, mutilated and counterfeit (UDMC) coins through defacement.
In a statement on Wednesday, BSP said that the coin defacement was undertaken beginning October 2021 until September 2022.
Coin defacement, done via machine, involves a process that alters the surfaces of coins to prevent them from being recirculated. The defaced coins may then be recycled into different items based on their metallic content.
Of the total UDMC coins defaced, 70 percent or 364 metric tons were unfit coins; 25 percent or 128 metric tons were mutilated; 4 percent or 21 metric tons were counterfeit; and 1 percent or 7 metric tons were demonetized.
Under Republic Act (RA) 7653, as amended by RA 11211, the BSP shall retire or destroy all Philippine banknotes and coins found to be unfit, mutilated or demonetized, including seized counterfeits. This will ensure that only fit and legal tender banknotes and coins are circulated, and used to purchase goods and services.
Coins considered unfit are those that are bent or twisted out of shape, defaced, corroded, and its weight reduced due to wear and tear.
According to BSP, the public may exchange or deposit unfit coins while coins of doubtful authenticity may be surrendered to banks for BSP inspection. If deemed unfit, said coins will be withdrawn from general circulation, it added.
“To reinforce its continuing efforts to maintain and protect the integrity of Philippine currency, the BSP is also seeking the enactment of a law defining and penalizing the excessive and unnecessary hoarding of coins,” the central bank said.
Last August, the government introduced the automated coin deposit machine as a scheme to promote the recirculation of coins and persuade Filipinos to use the low-value currency in their daily transactions.
However, the BSP has been calling for a strong law that will penalize coin hoarding in the country. Earlier this year, the BSP proposed to impose stiff penalties and sanctions against currency counterfeiting, and to criminalize the stockpiling of large amounts of coins. This, as coin hoarding may result to artificial shortage and inefficient circulation of coins.
Source: https://www.manilatimes.net/2022/11/03/business/top-business/bsp-to-deface-unfit-coins/1864809