THE Bangko Sentral ng Pilipinas (BSP) yesterday said coins that are currently in circulation are legal tender and therefore should be accepted as payments for goods and services.
“All denominations of the BSP Coin Series and the New Generation Currency Coin Series are legal tender and can be used as payment for goods and services,” the central bank said in a statement.
Under BSP circular No. 573, Series of 2006, P1, P5 and P10 coins can be used as payment for amounts not exceeding P1,000 while the P.25 coin and those of lower denomination for amounts not exceeding P100.
For the 20, the BSP said it is currently updating the circular to set its limit.
The BSP said the reminder is meant to boost efforts to promote the recirculation of coins since the inefficient circulation hampers its use as a medium of exchange and may cause artificial shortages.
Efficient coin circulation, on the other hand results in lower production costs due to minting of fewer coins, it added.
Filipinos tend to save or collect certain coins and keep them in coin banks at home. The central bank has repeatedly appealed to consumers to deposit their coins in the bank or to use them for payments. (ABS-CBN News)
