BSP prints P781 billion banknotes in 2023

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) produced 1.9 billion pieces of banknotes worth P781.6 billion and 1.8 billion pieces of coins worth P10.3 billion last year.

Currency production increased by 0.9 percent for banknotes and 46.4 percent for coins.

“The production deliveries complemented the BSP’s existing inventory of physical currency to service the demand of the economy,” the central bank said in its annual report.

Last year, the BSP shipped P421.3 billion worth of banknotes and coins to its regional offices and branches (ROBs). This is 2.1 percent lower than the value of currencies shipped a year before.

The frequency of currency shipments also dropped by 5.8 percent to 665 completed shipments via land, air and sea in 2023.

“Cancellation of flights due to technical malfunctions, scheduled preventive maintenance of aircraft, and weather-related conditions led to lower frequency and value of currency shipments,” the BSP said.

On the other hand, the central bank said it has completed the programmed delivery of 500 million pieces of P1,000 polymer banknotes from April 2022 to December 2023, which were subsequently issued for circulation.

The BSP’s overall banknote issuances to its ROBs stood at P814.6 billion or 1.9 billion pieces in 2023. Around 48.9 percent in value and 50.6 percent in volume were issued to service withdrawals of authorized agent banks in Metro Manila.

Banknote and coin withdrawals of banks in ROBs went up by 6.1 percent in value but declined by 8.6 percent in volume.

“This indicated that more high-denominated currencies were withdrawn during the year. The increase in general spending during the Barangay and Sangguniang Kabataan elections held in October and the higher-than-target inflation rate lifted currency withdrawals in 2023,” the BSP said.

“On the other hand, total banknote and coin retirement in ROBs rose by 4.4 percent in volume and 4.7 percent in value in 2023. This naturally followed the increase in banks’ unfit banknote deposits, which were eventually retired,” the BSP said.

The central bank has the sole authority to issue coins and banknotes for circulation in the Philippines.

The BSP also maintains a currency buffer stock that should be equivalent to three months’ worth of banknotes and one month’s worth of coins to provide insurance against uncertainties and shocks.

“As of end-2023, the total banknote inventory of the BSP was equivalent to 2.9 months of the economy’s banknote requirements, slightly below the required currency buffer stock level of three months,” it said.