Confusion ensued among Filipinos after reports circulated that the new P1,000 bill that went into circulation last April could not be folded and that the new polymer bills that was supposed to be “more durable” would not be honored if they are folded, altered or damaged.
Albay Rep. Joey Salceda sought further clarification from the Bangko Sentral ng Pilipinas due to the lack of clear guidelines on what constitutes still-valid legal tender and which bills are damaged beyond being acceptable by business establishments that has led to confusion in ordinary cash transactions.
The BSP had issued guidelines on the proper care of polymer bills last month. It advised against folding them and also urged users to keep the bills clean, wiping them with a damp, then dry cloth. BSP Governor Felipe Medalla even suggested that the notes be kept in longer wallets and purses to avoid having to fold them.
The unclear guidelines and the threat of penalties for “damaged” bills led to complaints on social media about folded polymer bills being rejected in malls and business establishments. This outcry led Salceda to write to Medalla, asking for “remedial recourse cash holders can resort to, should their polymer bills no longer be acceptable to establishments.”
He added that “if the polymer bills are more sensitive and less flexible than the paper bills, the whole effort sort of defeats its own purpose, which is to make paper bills more durable.”
In response, the BSP issued a statement informing the public that folded banknotes, whether paper or polymer, can still be circulated and accepted for payment. It added that it recently issued guidelines on the proper handling of polymer banknotes which include storing the banknotes is wallets where they fit properly, keeping them clean, and using them as payment for goods and services.
The BSP statement stressed that the above guidelines apply to both paper and polymer banknotes. The handling guidelines were issued to raise public awareness on the proper use of polymer and paper banknotes to safeguard their integrity and prolong their lifespan.
The brouhaha surrounding the new polymer banknote could’ve been avoided had the messaging from the BSP been clearer. It blows the mind how simple innovation that is supposed to result in more convenience can lead to the complete opposite simply because of a failure in messaging from the Central Bank’s top officials who are supposed to know better.
Knowing that normal use of the country’s banknotes, without having to worry of fines or jail time, will be a relief to the Filipinos who have been inconvenienced by this affair. Hopefully the BSP has also learned its lesson as well.*
