What if reason did not prevail? Could the buyer have forced the seller to accept payment in coins? Are the coins legal tender? The above-mentioned law merely specifies that, in principle, all banknotes and coins issued by the GNP are legal tender, which means that they can be used as a means of payment and must be accepted as such. However, there is a limit to the legal tender power of coins. On the one hand, coins with a value of one peso, five pesos and ten pesos are considered legal tender when they are used in quantities not exceeding 1,000 pesos. On the other hand, denominations of one-centavo, five centavos, ten centavos and twenty-five centavos coins are considered legal tender when used in quantities not exceeding 100 pesos. In accordance with international anti-money laundering conventions, the Bangko Sentral ng Pilipinas (BSP) has regulations on the amount of currency a traveler can carry in or out of the Philippines. The regulations are summarized in the Foreign Exchange Regulation Manual (FX Handbook) published by the Bangko Sentral. Can an employer pay employees` wages only in coins? According to Circular No. 537 of 2006, issued by the Bangko Sentral ng Pilipinas (BSP), payment, especially in the form of coins, is “legal tender” or must be accepted as long as it does not exceed a certain limit. For denominations P1 to P5, they cannot exceed 1,000 pesos, while 1, 5, 10 or 25 cents in total cannot exceed 100 pesos. Several social media users pointed this out, citing the BSP circular after the report of a municipal employee in Valenzuela who received his salary in coins worth 1,056 pesos, mostly in 5-cent and 25-cent denominations and one peso, made the rounds on Monday. Some have even stated that the action of the worker`s employer is illegal, although the local government of Valenzuela and the worker of the factory concerned have not yet carried out a complete inventory of parts, so the legality of the incident cannot yet be said. But the factory worker felt the action was carried out “deliberately” as a form of “retaliation” by the company against him for complaining about alleged unfair labor practices, Mayor Rex Gatchalian said.
This requirement applies to the import and export of Philippine national currencies, regardless of the country. The limit for cross-border transfers over PHP 50,000.00 in local currency applies per transaction. There is no limit to the number of importers wishing to request written permission from BSP to transport Philippine national currency above PHP 50,000.00, provided that local currencies can only be used for: a) testing/calibration/configuring currency counting/sorting machines; (b) for numismatics (collection of currency); and currency knowledge. A person may carry up to $10,000 (or the equivalent in another foreign currency) in cash or other monetary instruments to and from the Philippines. Other monetary instruments include traveller`s cheques, other cheques, bills of exchange, bank notes, money orders, bonds, certificates of deposit, securities, commercial instruments, trust certificates, certificates of deposit, deposit replacement instruments, trading orders, transaction notes, and confirmations of sale and investment. “All banknotes and coins issued by the Central Bank (now known as Bangko Sentral ng Pilipinas), fully guaranteed by the Government of the Republic of the Philippines, are legal tender for all debts, both public and private. However, BSP allows cross-border transfers of local currency above the PHP 50,000.00 threshold only for the following purposes: (a) to test/calibrate/configure currency counting/sorting machines; (b) for numismatics (collection of currency); and (c) currency knowledge. If the Philippine national currencies for testing/calibrating/configuring currency counting/sorting machines are purchased by GNP, the importer must provide GNP with a written undertaking to return such local currencies to the Philippines within three months of completion of the control/calibration/configuration of the currency counting/sorting machines. If the importer purchases the national currencies of the Philippines from sources other than GNP, he must provide the GNP with proof of origin of the Philippine pesos in addition to the above-mentioned written undertaking. Legal tender means that money is offered to pay a public or private debt, the same must be accepted. “Payment in cash shall be made in the currency indicated, and if it is not possible to deliver that currency, then in the currency which is legal tender in the Philippines.” Legal tender is the currency in which the debtor can force the creditor to pay a debt if it is offered for the correct amount.
While the coins issued by BSP are fully guaranteed by the government and are legal tender for all public and private debts, they are legal tender only for the following amounts: What about banknotes? Is there a limit to their legal tender? Nothing. Debentures, whatever they may be called, are legal tender for any amount of bonds. So you want to catch up with your creditor? Well, consider depositing coins and notes of different denominations and let your debtor count in your presence. Payments in a currency other than the agreed currency are not legal tender UNLESS they are made in a currency that is legal tender in the Philippines. Payment in the currency agreed by both parties is legal tender Section 4.1 of the FX Handbook expressly provides that any person may import or export or import into or out of the country. or electronically transferred legal tender Philippine banknotes and coins, cheques, money orders and other bills of exchange issued in pesos to banks operating in the Philippines for an amount not exceeding PHP 50,000.00 without the prior approval of BSP. The term “electronic transfer” as used here refers to a system whereby authorization to debit or credit an account (bank, company or individual) is granted by bank transfer, in which case or without a source document being sent for identification by authority. Demonetization is the process of removing the monetary value of a legal tender by the issuing authority.
Demonetized money is no longer accepted for payment for goods and services. So the next time you`re in possession of a crumpled peso note that has lost its surface, let a ruler measure the extent of the disfigurement. If it is less than 2/5 of the surface, insist that it is legal tender. In our country, the Bangko Sentral ng Pilipinas (BSP) has exclusive power and authority to issue currency. All notes and coins issued by BSP are fully guaranteed by the Government of the Republic of the Philippines pursuant to Section 52 of RA 7653, known as the “New Central Bank Act.” In the case of coins, Circular GNP 537, series of 2006, provides that coins are legal tender for amounts not exceeding P 1,000 for denominations of 1 piso, 5 piso, 10 piso and for amounts of P 100 for denominations of 1 sentimo, 5 sentimo, 10 sentimo and 25 sentimo. Merriam Webster dictionary defines as “money that is legally valid for the payment of debts and must be accepted for that purpose when offered” BSP`s prior written consent is required for the cross-border transfer of legal tender in excess of PHP 50,000.00 by a natural or legal person in accordance with section 4.1 of the BSP Foreign Exchange Regulatory Manual (FX Manual). as amended.