Activity 4&5

1. What are the different currency series and their denominations?

When the American liberation forces arrived in 1944, they brought the currency called
the Victory Series No. 66. With the creation of the Central Bank of the Philippines in 1949, came
the issuance of the English Series. They were in denominations 1, 2, 5, 10, 20, 50, 100, 200 and
500 pesos; all bearing portraits of Filipino heroes on the obverse, vignettes in Philippine history
on the reverse, and worded in English language. On the other hand, all denominations of the
Victory Series No. 66 were overprinted with “Central Bank of the Philippines” on the reverse
side, and remained legal tender until July 30, 1964.

The two highest denominations of the English Series were later withdrawn from
circulation on December 31, 1957, pursuant to R.A. No. 1516. Only notes of 1 up to 50 pesos
continued to be printed until 1961.

Small-denomination notes were also printed from 1951 through 1957 (5-, 10-, 20- and
50-centavos) to replace the US-Filipinas metallic coins. In 1955, the Half-Peso note of bigger
dimensions also went into circulation. On January 5, 1970, these small notes ceased to be legal
tender. Pursuant to Presidential Decree No. 378, all banknotes of the English Series were
considered demonetized after February 28, 1974.

In 1958, the centavo notes were discontinued and a new, entirely base metal coinage was
introduced, consisting of bronze 1 centavo, brass 5 centavos and nickel-brass 10, 25 and 50
centavos. The half-peso ceased to exist; the 25-centavo coin replaced the 20-centavo note; 50-,
10- and 5-centavo denominations were maintained. This series was considered demonetized after
August 31, 1979, except for the 10-centavo denomination that was considered demonetized only
after January 2, 1998.

2. Why can’t we just print a lot of money?

Creating more money is not as easy as it sounds. Printing more money can cause harmful
inflation while insufficient money supply can cause deflation which may also damage the
economy. The Bangko Sentral ng Pilipinas has the important task of keeping this in balance.

We shouldn’t be dependent on our government to provide us our needs. We, as an individual can
increase our money through our jobs, businesses, and investments.
3. What are the security features of the Enhanced New Generation currency series?
 The enhanced set of banknotes under the New Generation Currency series, these banknotes are
equipped with the latest anti-counterfeiting technology and embedded with tactile marks that will
make it easier for the elderly and persons with disabilities to differentiate each denomination.

4. Describe the features of our new 20-piso coin.

The new 20 peso coin contains microtexts, a mint mark of baybayin “pi”, 6 bsp letters in 6
different angles. At the back of the 20 peso coin which engraved with BSP logo, The malacanan
palace, and Nilad plant.

5. Explain the interrelationship of money, prices, and growth (10 pts.).

Money is what we use to buy our needs and wants. Money s the medium of exchange which can
make transactions too easy to perform. Without money, we can also conduct a barter for services
or goods. But most transactions are done through cash, and cash is essential that we can buy all
we need and we want. So that worth of a money is inevitable to someone who needs it. Through
prices, the cost of supply may change, it depends on the interactions of demand and supply. As
the inflation grows if these two does not met one of their needs. So that it is an unavoidable
situation that may cause the economy.

6. What is the importance of price stability? (10 pts).

Price stability helps in achieving higher employment and increased economic activity, as it:

increases transparency, as a stable price level helps people to understand better the relative
change in prices when the price of one product changes against that of another, without a change
in the overall price level causing confusion. This lets them make sensible decisions about
consumption and investment and use their money more efficiently;

reduces the inflation risk premiums in interest rates, because if creditors are confident that prices
will remain stable in the future, they do not add any additional charge to cover the inflation risk
of holding assets. This then lowers real interest rates and makes investment easier;

makes it less likely that individuals and businesses will protect themselves against inflation or
deflation, by tying amounts to be paid under contracts to changes in prices for example. High
inflation can also lead to hoarding of non-monetary assets like real estate;
 reduces the distortions that tax and social systems can cause to the behavior of participants in the
economy. Inflation or deflation can make those distortions worse, as budget systems do not
usually allow tax rates and social insurance payments to be indexed to the inflation rate;

helps avoid redistribution of incomes and wealth as a consequence of unexpected inflation or

deflation. Unexpected inflation or deflation has the biggest impact on the most vulnerable groups
in society, who are usually less able to protect themselves against such movements in prices.

7. Discuss in detail the BSP’s role in promoting price stability (10 pts.).
The BSP's main responsibility is to formulate and implement policy in the areas of money,
banking and credit with the primary objective of preserving price stability. Price stability refers
to a condition of low and stable inflation. By keeping price stable, the BSP helps ensure strong
and sustainable economic growth and better living standards.

8. Explain the features of the new BSP logo.

DESIGN ELEMENTS:

GOLDEN PHILIPPINE EAGLE. The logo employs a photorealistic rendering of a Philippine

eagle in flight, signifying the strength of leadership and foresight that the BSP provides in the
financial sector and the economy.
1. The eagle's outstretched wings and tail feathers symbolize the BSP's balanced, inclusive
approach to growth and development, while also conveying the central monetary
authority's mastery over its field.
2. The eagle's head and eyes face east, expressing the BSP's vigilance and readiness to seize
challenges and opportunities that rise over the horizon.
3. The talons represent the strong will, resolve, and the monetary and financial tools that the
central bank uses in discharging its mandates.
 
SHAPE . The logo is contained within a perfect circle—without sides, a beginning, or an end—
accentuated by a bold border, to convey the singular and integrative nature of the BSP and its
impartial approach to holistic growth and development.
 
GOLDEN STARS. The three golden stars represent the three pillars of central banking (price
stability, stable banking system, and a safe and efficient payments and settlements system), as
well as the BSP's commitment to promote and sustain a high quality of life for all Filipinos,
across Luzon, Visayas, and Mindanao.
 
CORPORATE TEXT. The name of the Bangko Sentral ng Pilipinas is rendered in gold, using a
clean sans-serif font, to signify the Bank's operational efficiency, clarity of vision, and single-
mindedness of purpose.
 
DOMINANT COLORS. Yellow gold and midnight blue dominate the new logo’s color scheme
to evoke the BSP’s stature as a premier government agency.
1. The yellow gold foreground elements represent the BSP's aim to promote economic
growth and prosperity, and the high standards of ethics and performance it holds.
2. The two-tone midnight blue background is evocative of the honor, dignity, and noble
character of the Filipino people, and the BSP's unwavering commitment to serve the
nation.

References:

https://www.bsp.gov.ph/SitePages/CoinsAndNotes/EnglishSeries.aspxhttps://
www.accountable.ph/why-bangko-sentral-ng-pilipinas-wont-print-more-money/
#:~:text=Printing%20more%20money%20can%20cause,may%20also%20damage%20the
%20economy.
https://www.bis.org/review/r200807o.htm#:~:text=Today%2C%20we%20unveil%20the
%20enhanced,disabilities%20to%20differentiate%20each%20denomination
https://www.bsp.gov.ph/SitePages/PriceStability/PriceStability.aspx https://
www.eestipank.ee/en/monetary-policy/importance-price-stability
https://www.bsp.gov.ph/Pages/AboutTheBank/SealCharterAndHistory/
TheBSPSeal.aspx#:~:text=The%20three%20golden%20stars%20represent,Luzon%2C
%20Visayas%2C%20and%20Mindanao.