BSP urges the public to put their moneys in banks and other formal financial institutions, than in their homes, to ensure more money in circulation and do away with the need for BSP to mint and print more notes.
To ensure that Philippine banknotes and coins are recirculated and used as payment instruments, the Bangko Sentral ng Pilipinas is urging Filipinos to store their money safely in banks, not in their homes.
Having these monies in circulation would ensure adequate supply of bills and coins instead of being kept in jars, barrels, plastic bottles, cabinets and piggybanks, outgoing BSP Governor Benjamin Diokno explained.
Storing banknotes and coins in containers, such as jars, barrels, plastic bottles, and cabinets, hampers the efficient circulation of currency, causing an artificial shortage. This would then require the BSP to increase the amount of banknotes and coins in circulation, resulting in additional production costs, Diokno said.
What Diokno is not aware of is that some big commercial banks refuse to have loose/unbundled coins kept in households (particularly low denominations of 5, 10, 25 centavos and even P1 and P5 coins) exchanged in their outlets unless these are taped together for easier management.
“The BSP could mint fewer coins if they are efficiently circulating. The reduced production costs would allow the central bank to remit more dividends to the national government, which would help fund pandemic-response measures and social services,” Governor Diokno said.
The BSP urges the public to deposit their savings in formal accounts with regulated institutions such as banks, e-money issuers, microfinance institutions, cooperatives, and non-stock savings and loan associations.
Hard-earned savings placed in these formal accounts are safeguarded through regulations imposed by the BSP and other relevant agencies. In the case of bank deposits, these are insured by the Philippine Deposit Insurance Corporation and would earn interest over time.
“Account ownership serves as a gateway to financial inclusion. It enables people to participate in the benefits and opportunities of the formal financial system, empowering them to build a better financial future,” Governor Diokno said.
The BSP regularly conducts information campaigns on coin recirculation and proper handling of Philippine currency, as well as on financial literacy and inclusion.
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