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: