By Jennifer P. Rendon
With a diameter of 30mm, weighing 11.50 grams, made from plated steel, with an embossed text, and still has the image of Manuel Quezon on its obverse, the new P20 coin was introduced by the Bangko Sentral ng Pilipinas-Iloilo Branch on Thursday, Feb. 27.
But aside from the new 20-piso coin, the BSP has another baby. The enhanced 5-piso new generation currency (NGC) sports a nine-side edge, a clear debris took from the round coin, which is prone to be mistaken as 1-piso or 10-piso coin.
Joanne Marie Castelo, Deputy Director of BSP-Iloilo Branch, said the new currency coins were only launched December 2019.
In Iloilo, the BSP made limited distributions to several banks.
Asked on the reasons for such move, Castelo cited a recent study by the University of the Philippines wherein “the 20-piso banknote is the most used denomination for cash transactions across the country.”
“Because of this, this particular bill is easily rendered unfit for circulation thus prompting the need to be returned to the BSP for replacement,” she said.
The issuance of a coin instead of a banknote is more cost efficient in terms of currency production in the long run, Castelo noted.
Although the production cost of coins is higher, coins can last in circulation much longer than bills.
Castelo said it costs P2 to product a single bill.
However, bills only last for an average of 6 months
On the other hand, producing a single coin costs ten pesos, but coins last for 10 to 15 years.
Meanwhile, Castelo said that they issued an enhanced 5-Piso NGC coin with nine sides, as the new design is more distinct from other denominations in the same series.
“This is to avoid confusion,” she said.
Castelo admitted that they received several complaints that the round 5-piso coin was mistaken as either 1-piso or 10-piso coin.
She said the issuance of the coins reaffirmed the BSP’s commitment to not only uphold the highest standard of excellence, but to also listen to the public’s observations.
“Our (BSP) Governor (Benjamin Diokno) is listening to the clamor of the public,” Castelo said.
She added the BSP endeavors to bring central banking closer to the people.
Castelo clarified, though, that the new 20-piso and the enhanced, nine-sided 5-piso NGC coins will co-exist with the 20-piso NGC banknotes and the round 5-piso NGC coins as legal tender.
However, the bill and the round coins shall be allowed to be gradually removed from circulation through natural attrition.
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Why is the BSP replacing the design of coins?
Lowen Andrew June Ligad, Bank Officer II of BSP Iloilo Branch, explained that It is based on the law (Republic Act 7653 or the New Central Bank Act, as amended by RA 11211) that allows BSP to call for replacement of coins which are more than 10 years old.
“It has been the standard of the Central Banks all over the world to replace the design every five to ten years. That’s the practice,” he said.
In the case of BSP, it is being done on an a area of every 10 years to maintain the integrity of the coins.
The 20-Piso coin—which is now the highest denomination in the NGC Coin Series – retains major elements of the 20-piso banknote.
A BSP release noted that the coin’s front side features Manuel L. Quezon, the first president of the Philippine Commonwealth who advocated the adoption of the national language, created the National Economic Council, and worked ardently for Philippine independence.
Further, its reverse side shows the BSP logo and the Malacañan Palace, the official residence of the Philippine President. Manuel L. Quezon was the first Philippine president to occupy it in his term.
Consistent with the NGC Coin Series which highlights native flora, the 20-Piso coin showcases the Nilad, the plant from which the name of the country’s capital, Manila, is believed to have originated. Likewise, the Nilad’s star-shaped flowers were said to be once clustered in abundance along the banks of the Pasig River where the Malacañan Palace is situated.
The bi-color 20-Piso NGC coin is easily distinguishable from other coins in the series. It is also highly secure, as it has microprints and an identifiable edge to deter counterfeiting.
Ligad detailed that the enhanced 5-Piso NGC coin has nine sides to make it more distinct from other denominations in the NGC Coin Series.
The 5-piso coin also retains the design elements of the round NGC coin, with Andres Bonifacio, the father of the Katipunan, on the front side and the Tayabak plant, on the reverse. It also retains the security features of the round coin, including the microprints “Republika ng Pilipinas” and “Bangko Sentral ng Pilipinas.”
