Question & AnswerQ&A (Republic Act No. 4100)
The main purpose of Republic Act No. 4100 is to amend Section One of Republic Act No. 529 to assure the uniform value of Philippine coin and currency and to prohibit any domestic obligation from requiring payment in gold, foreign currency, or any currency other than Philippine currency.
Every domestic obligation contracted in the Philippines that purports to give the obligee the right to require payment in gold, a particular kind of coin, currency other than Philippine currency, or an amount of money measured thereby is affected by Republic Act No. 4100.
No, such provisions are generally void except in specific cases such as transactions involving foreign government loans or investments, high-priority economic projects financed by foreign funds, forward exchange transactions between banks or juridical persons, and import-export and international banking and financial transactions.
The exceptions include: (a) transactions involving proceeds of loans or investments by foreign governments and international financial institutions; (b) transactions affecting high-priority economic projects as determined by the National Economic Council financed by foreign funds; (c) forward exchange transactions between banks or individuals or juridical persons; (d) import-export and other international banking, financial, investment, and industrial transactions.
They shall be discharged in Philippine currency measured at the prevailing rates of exchange at the time the obligation was incurred, except for loans made in foreign currency stipulated to be payable in the same currency, in which case the exchange rate prevailing at the stipulated date of payment shall apply.
Such provisions are against public policy, null, void, and of no effect, and no such provision shall be included in any obligation incurred after the enactment of this Act, except for the enumerated exceptions.
All coin and currency, including Central Bank notes issued and declared by the Government of the Philippines, are legal tender for all debts, public and private.
The National Economic Council determines the high-priority economic projects for agricultural, industrial, and power development that are eligible for exceptions when financed by or through foreign funds.
No, the Act specifically excludes import-export, international banking, financial investment, and industrial transactions from its prohibition on payment in foreign currency or other kinds of coin and currency.
This Act took effect upon its approval on June 19, 1964.