BSP Retires ₱685.6 Billion Worth of Banknotes in 2024

The Bangko Sentral ng Pilipinas (BSP) retired a total of ₱685.6 billion worth of banknotes in 2024, citing their unfitness for circulation, the central bank reported on Friday.

This marks an 11.3% decline from the 2023 level, which BSP Assistant Governor Rosabel Guerrero attributed to the wider use of the ₱1,000 polymer banknote.

“Partly because of the issuance of the polymer [banknotes], which started in 2022, that has a longer lifespan already, so we don’t need to retire a lot of the currency,” Guerrero told reporters.

Why Polymer Banknotes Last Longer

The ₱1,000 polymer banknote was first introduced in December 2021 and entered circulation in April 2022. Compared to paper bills, polymer banknotes are:

✔ More durable, lasting up to 7.5 years versus 1.5 years for paper banknotes
✔ Resistant to water, oil, and dirt, making them cleaner and less likely to get damaged

In December 2024, the BSP also released polymer versions of the ₱500, ₱100, and ₱50 banknotes, featuring images of native and protected species alongside local weave designs.

How BSP Retires Banknotes

The BSP removes three types of banknotes from circulation:

1️⃣ Unfit Banknotes – Limp, soiled, faded, with markings, stains, or heavy folds. (Can be exchanged at any bank.)
2️⃣ Mutilated Banknotes – Torn, missing parts, charred, decayed, or held together by adhesives/staples. (Submitted to banks for BSP analysis.)
3️⃣ Demonetized Banknotes – No longer considered legal tender.

Increase in Coin Defacement & Bank Transactions

📌 Coins defaced: 157.8 metric tons in 2024 (up 59.1% from 2023)
📌 Banknote withdrawals: ₱1.5 trillion (up 12.5%)
📌 Coin withdrawals: ₱9.8 billion (down 3.4%)
📌 Banknote deposits: ₱1.2 trillion (up 0.2%)
📌 Coin deposits: ₱1.1 billion (up 26.0%)

The shift to polymer currency is expected to reduce the need for frequent banknote retirements, improving cash durability and circulation efficiency.