MANILA - The Bangko Sentral ng Pilipinas on Wednesday urged the public to deposit their savings into formal accounts such as banks, e-money issuers, cooperatives and loan associations instead of keeping money at home.
Storing banknotes and coins in containers such as jars, barrels, plastic bottles and cabinets hampers the efficient currency circulations causing an artificial shortage, the BSP said in a statement.
With an artificial shortage, the BSP is forced to increase the number of banknotes and coins resulting in additional production costs.
“The unnecessary accumulation of banknotes and coins prevents Philippine currency from being recirculated and used as payment instrument,” BSP Governor Benjamin Diokno said.
Minting fewer coins will reduce costs and allow the central bank to remit more dividends to the government which could then boost pandemic response measures and social services, Diokno added.
“The BSP could mint fewer coins if they are efficiently circulating. The reduced production costs would allow the central bank to remit more dividends to the national government, which would help fund pandemic-response measures and social services,” Governor Diokno said.
Savings placed in formal accounts are safeguarded by BSP regulations and are insured by the Philippine Deposit Insurance Corporation and would earn interest over time, the central bank said.
“Account ownership serves as a gateway to financial inclusion. It enables people to participate in the benefits and opportunities of the formal financial system, empowering them to build a better financial future,” Diokno said.
Some Filipinos keep their coins and other bills as savings before depositing them to bank accounts when they hit a certain goal or time frame.
Among the BSP's goals is to bring 70 percent of the adult population into the formal financial system by opening bank accounts.