THE UNIT OF MONETARY VALUE
Section 48. The Peso. - The unit of monetary value in the Philippines is the "peso,"
which is represented by the sign "P."
The peso is divided into one hundred (100) equal parts called "centavos," which are
represented by the sign "c."
ARTICLE II
ISSUE OF MEANS OF PAYMENT
A. CURRENCY
Section 49. Definition of Currency. - The word "currency" is hereby defined, for
purposes of this Act, as meaning all Philippine notes and coins issued or circulating in
accordance with the provisions of this Act.
Section 50. Exclusive Issue Power. - The Bangko Sentral shall have the sole power and
authority to issue currency, within the territory of the Philippines. No other person or entity,
public or private, may put into circulation notes, coins or any other object or document which, in
the opinion of the Monetary Board, might circulate as currency, nor reproduce or imitate the
facsimiles of Bangko Sentral notes without prior authority from the Bangko Sentral.
The Monetary Board may issue such regulations as it may deem advisable in order to
prevent the circulation of foreign currency or of currency substitutes as well as to prevent the
reproduction of facsimiles of Bangko Sentral notes.
The Bangko Sentral shall have the authority to investigate, make arrests, conduct
searches and seizures in accordance with law, for the purpose of maintaining the integrity of the
currency.
Violation of this provision or any regulation issued by the Bangko Sentral pursuant
thereto shall constitute an offense punishable by imprisonment of not less than five (5) years but
not more than ten (10) years. In case the Revised Penal Code provides for a greater penalty,
then that penalty shall be imposed.
Section 51. Liability for Notes and Coins. - Notes and coins issued by the Bangko
Sentral shall be liabilities of the Bangko Sentral and may be issued only against, and in amounts
not exceeding, the assets of the Bangko Sentral. Said notes and coins shall be a first and
paramount lien on all assets of the Bangko Sentral.
The Bangko Sentral's holdings of its own notes and coins shall not be considered as part
of its currency issue and, accordingly, shall not form part of the assets or liabilities of the
Bangko Sentral.
Section 52. Legal Tender Power. - All notes and coins issued by the Bangko Sentral
shall be fully guaranteed by the Government of the Republic of the Philippines and shall be legal
tender in the Philippines for all debts, both public and private: Provided, however, That, unless
otherwise fixed by the Monetary Board, coins shall be legal tender in amounts not exceeding
Fifty pesos (P50.00) for denominations of Twenty-five centavos and above, and in amounts not
exceeding Twenty pesos (P20.00) for denominations of Ten centavos or less.
Section 53. Characteristics of the Currency. - The Monetary Board, with the approval of
the President of the Philippines, shall prescribe the denominations, dimensions, designs,
inscriptions and other characteristics of notes issued by the Bangko Sentral: Provided, however,
That said notes shall state that they are liabilities of the Bangko Sentral and are fully guaranteed
by the Government of the Republic of the Philippines. Said notes shall bear the signatures, in
facsimile, of the President of the Philippines and of the Governor of the Bangko Sentral.
Similarly, the Monetary Board, with the approval of the President of the Philippines, shall
prescribe the weight, fineness, designs, denominations and other characteristics of the coins
issued by the Bangko Sentral. In the minting of coins, the Monetary Board shall give full
consideration to the availability of suitable metals and to their relative prices and cost of minting.
Section 54. Printing of Notes and Mining of Coins. - The Monetary Board shall prescribe
the amounts of notes and coins to be printed and minted, respectively, and the conditions to
which the printing of notes and the minting of coins shall be subject. The Monetary Board shall
have the authority to contract institutions, mints or firms for such operations.
All expenses incurred in the printing of notes and the minting of coins shall be for the
account of the Bangko Sentral.
Section 55. Interconvertibility of Currency. - The Bangko Sentral shall exchange, on
demand and without charge, Philippine currency of any denomination for Philippine notes and
coins of any other denomination requested. If for any reason the Bangko Sentral is temporarily
unable to provide notes or coins of the denominations requested, it shall meet its obligations by
delivering notes and coins of the denominations which most nearly approximate those
requested.
Section 56. Replacement of Currency Unfit for Circulation. - The Bangko Sentral shall
withdraw from circulation and shall demonetize all notes and coins which for any reason
whatsoever are unfit for circulation and shall replace them by adequate notes and coins:
Provided, however, That the Bangko Sentral shall not replace notes and coins the identification
of which is impossible, coins which show signs of filing, clipping or perforation, and notes which
have lost more than two-fifths (2/5) of their surface or all of the signatures inscribed thereon.
Notes and coins in such mutilated conditions shall be withdrawn from circulation and
demonetized without compensation to the bearer.
Section 57. Retirement of Old Notes and Coins. - The Bangko Sentral may call in for
replacement notes of any series or denomination which are more than five (5) years old and
coins which are more than (10) years old.
Notes and coins called in for replacement in accordance with this provision shall remain
legal tender for a period of one (1) year from the date of call. After this period, they shall cease
to be legal tender but during the following year, or for such longer period as the Monetary Board
may determine, they may be exchanged at par and without charge in the Bangko Sentral and by
agents duly authorized by the Bangko Sentral for this purpose. After the expiration of this latter
period, the notes and coins which have not been exchanged shall cease to be a liability of the
Bangko Sentral and shall be demonetized. The Bangko Sentral shall also demonetize all notes
and coins which have been called in and replaced.
Assessment and Activities
1. State the reason why the BSP is the bank of issue. Is it possible for the amusement park
to mint their own coins and bills?
