Law Summary
Acceptance and Exchange Period
- Banks are directed to accept old CB coins from the public regardless of the amount.
- The old coins can be tendered for exchange or replacement with new BSP coins or banknotes.
- The deadline for this acceptance and exchange is set until January 2, 1998.
Restriction on Reissuance and Recirculation
- Banks are strictly advised not to release, reissue, or recirculate the old CB coins once they are accepted for exchange or deposit.
- This measure ensures the rapid withdrawal of demonetized coins from circulation.
Purpose of the Directive
- To facilitate an orderly and expeditious transition from old CB coins to new BSP currency.
- To prevent confusion and maintain monetary policy effectiveness by swiftly removing old demonetized coins.
Implementation and Enforcement
- The directive is issued pursuant to BSP Circular No. 81, Series of 1995.
- The BSP, through its Governor, mandates strict compliance by all banks.
- Non-compliance may subject banks to BSP regulatory sanctions, ensuring the seriousness of the directive.
Authority and Adoption
- This circular letter is an official communication from the Bangko Sentral ng Pilipinas.
- Adopted and signed by Governor Gabriel C. Singson on February 28, 1997.
- Reinforces previous communications issued on January 7, 1997, regarding the same subject.