BSP Evaluating Legal Tender Limit of ₱20 Coin

The Bangko Sentral ng Pilipinas (BSP) is evaluating the limit to which the public can use the ₱20 coin as legal tender and if this denomination would be allowed to go beyond the ₱1,000 current payment limit. Currently, the ₱1,000 limit is stipulated for the ₱10, ₱5, and ₱1 coins.

As stated in the BSP Circular No. 537 implemented last 2006, the usage of coins for payment was limited. With the ₱1,000 limit on the ₱10, ₱5, and ₱1 the public can pay in these denominations amounting up to only ₱1,000.

For the 25¢, 10¢, 5¢, and 1¢ the legal tender limit is set at ₱100.

“The BSP is currently updating the said circular on the legal tender limit for the 20-peso coin,”  stated the BSP.

The advisory also called on the public to accept coins as payment for services and goods or a change in their transactions.

The BSP also said, “This advisory is in line with the BSP’s broader efforts to promote the efficient recirculation of coins. Inefficient circulation of coins hampers the use of coins as a medium of exchange and may also cause artificial coin shortages in specific locations. On the other hand, efficient coin circulation results in lower production costs due to the minting of fewer coins,”

Since June, the BSP has been studying lower-denominated currencies, both coins and banknotes are low in demand or have less public usage.

With increased digitalization and the necessity to provide a more cost-effective currency production, the BSP is constantly looking for ways to enhance the functionality of its currency forecasting capabilities.

Source: Manila Bulletin