BSP Estimates Savings with Polymer

The Bangko Sentral ng Pilipinas (BSP) has said it will save as much as P2.4 billion (US$40 million) from the conversion of paper 1,000 piso banknotes to polymer due to their longer lifespan.

The P1,000 polymer banknotes have been on a test run since April this year with up to 500 million notes due to circulate alongside the paper version, which has a 20% abaca content. As the BSP’s printworks are currently only equipped to print paper-based banknotes, the polymer notes have been sourced from Note Printing Australia.

The statement on savings was made at a Senate Committee on Banks, Financial Institutions and Currencies hearing on polymer, which questioned BSP’s decision on choosing polymer banknotes and their impact on the abaca sector.

‘Using data on the actual volume of 2021 new banknote withdrawals by banks from the BSP and lifespan assumptions ranging from 2.5 times to 4 times longer than that of paper, estimated production savings amount to P1.2–2.4 billion, holding other factors constant,’ BSP Deputy Governor Mamerto E Tangonan told the hearing.