Wednesday, August 12, 2015

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Please handle carefully - Philippine peso bills

Do you know that Banko Sentral ng Pilipinas is replacing mutilated money? Yes, you heard it right. Every 10 years or so, the BSP is collecting old currency unfit for use for replacement.

According to the Section 56 of the Republic Act No. 7653 or the New Central Bank Act, BSP shall withdraw from the circulation and demonetized all unfit notes and coins and shall replace them by adequate ones.

In short, they are replacing the unfit money to new ones and get rid of it. These unfit money refers to those which are mutilated, defaced, stapled, deformed, etc.

But there's a limitation to which extent the BSP can replace such money. If the note or coin is already impossible to identify and has lost its 2/5 surface or all of the signatures inscribed in it, the BSP will demonetize it without compensation to the bearer.

Meanwhile, even if we have known that the BSP is replacing such money, we should also be aware that the government is spending a lot of tax just to print them.

So, before doing any damage to your money such as defacing, clipping, ironing, writing on it, tearing any part or even folding it, keep in mind that it'll cost your tax and money too.
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