Monday, March 29, 2010

The New Generation Currency Program of the Philippines... from http://philmoney.blogspot.com/

The New Generation Currency
Program of the Philippines

1. Why is the BSP changing the
designs of our money?
As a matter of practice, central
banks regularly change the designs of their money - whether coins or
banknotes - to guard against counterfeiters. By making it very
difficult and costly for counterfeiters to produce exact copies of our
money, we protect the integrity of our currency against criminals.
2. How will BSP prevent the spread of counterfeit or fake
money?
The BSP is upgrading the security features in
all of our banknotes to make it easier for the public to detect fake
money. The BSP will mount a nationwide information campaign to educate
our people on how to tell genuine banknotes from counterfeits.
3. When will the new currency be distributed ?
The BSP
will start distributing the initial batch of new banknotes in December
2010. New coins will be introduced starting 2012.
4.
What denominations are covered by the new designs?
All of our six banknote denominations will have new designs: 20-piso,
50-piso, 100-piso, 200-piso, 500-piso, and 1,000- piso. At the same
time, all of our coin denominations will have new designs: 1-sentimo,
5-sentimo, 10-sentimo, 25-sentimo, 1-piso, 5-piso, and 10-piso.
5. What will be the size of the new banknotes?
The size of the new banknotes will be the same as the present
currency.
6. What will happen to the existing currency
in circulation?
The present banknotes will remain in
circulation and will continue to be accepted as legal tender for at
least three more years. Based on previous currency retirement or
demonetization program of the BSP, this will give enough time for the
public to make a full transition to our new generation currency. A
separate schedule will be followed for coins. Appropriate announcements will be released before and after the introduction of our new
banknotes and coins to guide the public and ensure a smooth transition
to our new currency.
7. How does the BSP select new
designs and security features for our currency?
The
BSP has a Numismatic Committee that initiates new design studies and
proposes upgraded security features for consideration by its Monetary
Board. Once a selection is made, the Monetary Board sends the proposed
new designs for the approval of the President of the Philippines.
8. What are the design elements of our new
banknotes?
Our new banknotes pay tribute to
Filipinos who played significant roles at various moments of our
nation's history. World heritage sites and iconic natural wonders of
the Philippines are also proudly highlighted.
9. What are the designs elements of our new coins?
The
new coins will feature our national symbols.
10.
What are the considerations in the selection of security features for
our new currency?
The BSP did research and
benchmarking on security features that are available from global
suppliers and are being used by other central banks. The security
features range from level 1 to level 4 or from highly visible to hidden security elements that can be detected only by sophisticated
equipment. The layered security features are as follows:
Level I : Security features which can be easily recognized by the public
without use of special instrument. These are the "look", "feel", "tilt" elements in the notes such as watermark, security thread, security
fibers, and others.
Level II: Security features recognizable
by professional cash handlers/bank tellers with the use of magnifying
lens or ultraviolet light. Examples are fluorescent features and
security fibers, microprinting.
Level III: The hidden or
covert security features reserved for the use of the Bangko Sentral.
Level IV: Forensic security features for the use of law enforcers in testifying whether a banknote is genuine or counterfeit. Forensic
features are detectable at specialized laboratories.
11. Is it costly to change currency designs and security features?
There are additional but relatively minimal costs involved in changing the design and upgrading the security features of our money.
To the BSP, the benefits far outweigh the upfront incremental costs
involved in shifting to the new designs and to abaca-reinforced paper
that will incorporate the new embedded security features.
12. Who will produce our new currency?
In
accordance with global practice, the preparation of the metal plates
and dies for the production of money is done by highly specialized
groups called "originators" who will print the first batch of our new
currency. For this, an international competitive bidding will be
conducted.
After this, the BSP will start printing our new
currency using these origination materials. The BSP is also buying new
equipment that will increase its printing capacity to meet the demands
of our growing population and economy.

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