Philippines aims to bring polymer banknote production in-house in 2027
The central bank is preparing a production line in Quezon City with capacity for up to 500 million banknotes annually.
The Philippines is targeting 2027 to begin producing polymer banknotes domestically rather than relying on outsourced manufacturing in Australia, Bangko Sentral ng Pilipinas (BSP) deputy governor Mamerto Tangonan said.
At a November 9 briefing in Quezon City, Tangonan said work was under way to prepare an initial line at the BSP’s Security Plant Complex. It would have capacity for up to 500 million banknotes a year, he said, citing high demand and the need to develop experience operating polymer production equipment.
Tangonan said the BSP schedules manufacturing for the full year and favours producing a single product at a time. A switch requires plate replacements, a machinery shutdown and cleaning.
According to the central bank, polymer notes have security features that make them harder to counterfeit and can remain usable for as long as 7.5 years, against 1.5 years for paper currency. Tangonan said their thinner form also lets automated teller machines accommodate more notes.
The growth of digital banks, e-wallets and electronic transfers has not displaced physical currency, Tangonan said. Demand for cash continues to rise alongside electronic cash, he added.
