BSP Retires 519.93 MT of Coins From Circulation

The Bangko Sentral ng Pilipinas has reported that an estimated 519.93 metric tons of “unfit, demonetized, mutilated and counterfeit” (UDMC) coins have been retired through the process of defacement. The process began in October 2021 and finished in September 2022.

BSP says that coin defacement is done with a machine and can be recycled depending on the metallic content. Defacement is defined as a procedure that “alters the surfaces of coins to prevent them from being recirculated”. Coins that are considered unfit are those that are twisted, bent, corroded, or have decreased weight from wear and tear.

An estimated 364 metric tons of the defaced UDMC coins or 70% were regarded as unfit coins while 128 metric tons or 25% were considered mutilated.

Around 21 metric tons or 4% were considered counterfeit and seven metric tons or 1% were regarded as demonetized.

The BSP says retiring UDMC coins is done to maintain the integrity of the currency of the country.

“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,”  says BSP.

In light of this, the BSP has expressed its intent to implement stricter penalties and tougher sanctions to combat currency counterfeiting and to criminalize the hoarding stockpiling of large amounts of coins. Coin hoarding can lead to the inefficient circulation of coins and possible artificial storage of coins due to these staying idle in drawers, piggy banks, and bank vaults instead of being re-circulated.

Source: Manila Bulletin