BSP flags risks in removing P500, P1K bills from circulation

The Bangko Sentral ng Pilipinas (BSP) said the proposal to demonetize the P1,000 bill is not that simple, warning that such a move could do more harm than good.

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Amid the corruption scandal involving flood control projects, BSP Governor Eli Remolona Jr. told reporters that the central bank is studying the proposal, but noted the negative experiences of other countries with similar measures.

“The P1,000 bill is widely used. For a small inconvenience to contractors, you're going to make life difficult for many people. But we're still studying it. We haven’t decided yet,” he said.

Remolona called it a tantalizing proposal, but emphasized that it is not a simple issue, comparing it to “cutting off one’s nose to spite one’s face,” and warning that it could cause more damage.