QuestionsQuestions (Republic Act No. 8183)
All monetary obligations shall be settled in the Philippine currency that is legal tender in the Philippines.
No. The parties may agree that the obligation or transaction shall be settled in any other currency at the time of payment.
Payment in another currency is allowed only if the parties agree that settlement shall be made in that other currency at the time of payment.
Republic Act No. 529, as amended, which was entitled “An Act to Assure the Uniform Value of Philippine Coin and Currency.”
RA 529, as amended, is no longer in force, as it is expressly repealed by RA 8183.
It takes effect fifteen (15) days after its publication in the Official Gazette or in two (2) national newspapers of general circulation.
Publication must be in the Official Gazette or in two (2) national newspapers of general circulation.
The Bangko Sentral ng Pilipinas (BSP) and the Department of Finance.
The obligation must be settled in Philippine currency that is legal tender in the Philippines.
The agreement allows settlement in any other currency at the time of payment, meaning the operative timing is when payment is actually made.
It is about the settlement of obligations in Philippine currency, while allowing an agreed exception for payment in other currencies.
RA 8183’s general rule applies: settlement must be in Philippine currency that is legal tender in the Philippines.
Section 1 provides the rule on settlement in Philippine legal tender and allows foreign currency only by agreement at the time of payment.
It establishes the legal tender rule for monetary obligations and provides a clear statutory allowance for foreign currency settlement when parties agree.