Gov. Benjamin Diokno of the Bangko Sentral unveils the design of the new polymer P1,000 banknote.
Its issuance has been approved by the BSP Monetary Board and the President’s Office.
In a text message to reporters, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said that additional bank reserve cuts of 200 basis points are “on the way,” while also signaling “deeper” rate cuts in response to a “expected sharp economic slowdown.”
A reserve reduction frees up cash on banks’ balance sheets, allowing them to lend more freely. A reduction in policy rates signals to banks that they should lower their own loan interest rates in order to encourage more lending and entice people to borrow more in order to boost economic activity.
“It was designed by BSP and approved by the National Historical Institute. Its issuance has been approved by the Monetary Board and the Office of the President,” BSP Governor Benjamin Diokno said.
The new series, which will start its delivery in April 2022 through the 1000 Philippine peso bill, will focus on fauna and flora in the Philippines as well as those with positive Filipino images like tamaraw, sampaguita, etc. instead of heroes.
Furthermore, the BSP asserts that its P20 banknote costs P2 to produce and lasts six months. It goes on to say that the P20 coin, on the other hand, costs P10 but will last for 10-15 years.
The P20 banknote is the most commonly used Philippine banknote, according to the central bank, so converting it to a coin will extend its life.
Former President Manuel Quezon is depicted on the P20 banknote. The Quezon family had previously asked the central bank to reconsider its decision to issue a P20 coin because it would send a psychological signal of devaluation and “symbolically it also serves… as the demotion of the personality on the bill to be withdrawn from circulation.”