The peso.
Section 47
SEC. 47. The peso.—The unit of monetary value in the Philippines is the "peso," which is represented by the sign “P.” The peso is divided into one hundred equal parts called "centavos," which are represented by the "c."
RA 265 CHAPTER II.—THE CENTRAL BANK AND THE MEANS OF PAYMENT
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ARTICLE I.— The Unit of Monetary Value
ARTICLE II.— The International Value of the Peso
Par value.
Section 48
SEC. 48. Par value.—The gold value of the peso is seven and thirteen-twenty firsts (7-13/21) grains of gold, nine-tenths (0.900) fine, which is equivalent to the United States dollar parity of the peso as provided in section 6 of Commonwealth Act No. 699.
Changes in par value.
Section 49
SEC. 49. Changes in par value.— The par value of the peso shall not be altered except when such action is made necessary by the following circumstances: (a) When the existing par value would make impossible the achievement and maintenance of a high level of production, employment and real income without: (1) The depletion of the international reserve of the Central Bank; or (2) The chronic use of restrictions on the convertibility of the peso into foreign currencies or on the transferability abroad of funds from the Philippines; or (3) Undue Government intervention in, or restriction of, the international flow of goods and services; or (b) When uniform proportionate changes in par values are made by the countries which are members of the International Monetary Fund; or (c) When the operation of any executive or international agreement to which the Republic of the Philippines is a party requires an alteration in the gold value of the peso. Any modification in the gold or dollar value of the peso must be in conformity with the provisions of all executive and international agreements subscribed to and ratified by the Republic of the Philippines, and such modification shall be made only by the President of the Republic upon the proposal of the Monetary Board and with the approval of Congress. The proposal of the Monetary Board shall require the concurrence of at least five of the members of Board. Notwithstanding the provision of the proceeding paragraph with respect to the approval of Congress, if there should be an .emergency which, in the opinion of the President, is so grave and so urgent as to require immediate action, the President may modify the par value of the peso without the prior approval of Congress: Provided, however, That he shall report to the Congress on his action at the earliest opportunity.
Parties of foreign currencies with respect to the peso.
Section 50
SEC. 50. Parties of foreign currencies with respect to the peso.— The legal parties of foreign currencies with respect to the Philippine peso shall be determined as follows: (a) Currencies of countries which are members of the International Monetary Fund shall have their parities with respect to the peso established on the basis of their par values as announced by said Fund. If the par value of the currency of a member country has not been announced, the parity of such currency with respect to the peso shall be calculated on the basis of the exchange rates for that currency in foreign markets. If there is divergence among the rates quoted in foreign markets, the Monetary Board shall determine which rates shall be employed for the calculation of parity. (b) Currencies of countries which are not members of the International Monetary Fund shall have 'their parities with the peso established on the basis of their gold or United States, dollar equivalents, provided such currencies are freely and effectively convertible into gold or dollars. Whenever the currency of any such country is not so convertible its parity with the peso shall be calculated on the basis of the exchange rates for that currency in foreign markets. If there as divergence among the rates quoted in foreign markets, the Monetary Board shall determine which rates shall be employed for the calculation of parity. The Central Bank shall determine, in conformity with the provisions of this section, and shall publish regularly, the legal parities of the foreign currencies of importance in the international transactions of the Philippines. The Central Bank may also specify the parity of any foreign currency not included in the published list of parities. The parities published or specified by the Central Bank shall be recognized as the legal parities for all purposes.
ARTICLE III.—Issue of Means of Payment
Definition of currency.
Section 51
SEC. 51. Definition of currency.—The word "currency" is hereby defined, for the purposes of this Act, as meaning all Philippine notes and coins issued or circulating in accordance with the provisions of this Act.
Issue power.
Section 52
SEC. 52. Issue power.—The Central Bank shall have the sole right and authority to issue currency within the territory of the Philippines. No other person or entity, public or private, may put into circulation notes, coins, or any other object or document which, in the opinion of the Monetary Board, might circulate as currency. The Monetary Board may issue such regulations as it may deem advisable in order to prevent the circulation of foreign currency or of currency substitutes.
Liability for notes and coins.
Section 53
SEC. 53. Liability for notes and coins.—Notes and coins issued by the Central Bank shall be liabilities of the Bank, and may be issued only against, and in amounts not exceeding, the assets of the Bank. Said notes and coins shall be a first and paramount lien on all assets of the Central Bank. The Central Banks holdings of its own notes and coins shall not be considered as part of its currency issue and, accordingly, shall not form part of the assets or liabilities of the Bank.
Legal tender power.
Section 54
SEC. 54. Legal tender power.—All notes and coins issued by the Central Bank shall be fully guaranteed by the Government of the Republic of the Philippines and shall be legal tender [in the Philippines for all debts, both public and private.
Characteristics of the currency.
Section 55
SEC. 55. Characteristics of the currency.—The Monetary Board, with the approval of the President of the Philippines, shall prescribe the denominations, dimensions, designs, inscriptions and other characteristics of notes issued by the Central Bank: Provided, however, That said notes shall state that they are liabilities of the Central Bank and are fully guaranteed by the Government of the Republic of the Philippines. Said notes shall bear the signatures, in facsimile, of the President of the Philippines and of the Governor of the Central Bank. Similarly, the Monetary Board, with the approval of the President of the Philippines, shall; prescribe the weight, fineness, designs, denominations and other characteristics of the coins issued by the Central Bank. In the minting of coins, the Monetary Board shall give full consideration to the availability of suitable metals and to their relative prices and cost of minting.
Printing of notes and minting of coins.
Section 56
SEC. 56. Printing of notes and minting of coins.—The Monetary Board shall prescribe the amounts of notes and coins to be printed and minted, respectively, and the conditions to which the printing of notes and the minting of coins shall foe subject. The Monetary Board shall have the authority to contract institutions, mints or firms for such operations. All expenses incurred in the printing of notes and the minting of coins shall be for the account of the Central Bank.
Inter convertibility of currency.
Section 57
SEC. 57. Inter convertibility of currency.—The Central Bank shall exchange, on demand and without charge, Philippine currency of any denomination for Philippine notes and coins of any other denomination requested. If, for any reason, the Central Bank should temporarily be unable to provide notes or coins of the denominations requested it shall meet its obligation by delivering notes and coins of the denominations which most nearly approximate those requested.
Replacement of currency unfit for circulation.
Section 58
SEC. 58. Replacement of currency unfit for circulation.— The Central Bank shall withdraw from circulation and shall demonetize all notes and coins which for any reason whatsoever are unfit for circulation and shall replace them by adequate notes and coins: Provided, however, That the Central Bank shall not replace notes and coins the identification of which is impossible, coins which show signs of filing, clipping or perforation, and notes which have lost more than two-fifths of their surface or all of the signatures inscribed thereon. Notes and coins in such mutilated condition shall be withdrawn from circulation and demonetized without compensation to the bearer, unless it is proved to the satisfaction of the Central Bank that the currency became unfit for circulation as a result of accidental causes or forces beyond control, in which ease replacement shall be made.
Retirement of old notes and coins.
Section 59
SEC. 59. Retirement of old notes and coins.—The Central Bank may call in for replacement notes of any series or denomination which are more than five years old and coins which are more than ten years old. Notes and coins called in for replacement in accordance with this provision shall remain legal tender for a period of one year from the date of call. After this period, they shall cease to be legal tender but during the following three years, or for such longer period as the Monetary Board may determine, they may be exchanged at par and without charge in the Central Bank and by agents duly authorized by the Central Bank for this purpose. After the expiration of this latter period, the notes and coins which have not been exchanged shall cease to be a liability of the Central Bank and shall be demonetized. The Central Bank shall also demonetize all notes and coins which have been called in and replaced.
Profits from recoinage or from reductions in the Bank's currency liabilities.
Section 60
SEC. 60. Profits from recoinage or from reductions in the Bank's currency liabilities.—Any profits resulting from recoinage or from a reduction in the liabilities of the Central Bank through loss, destruction or demonetization of currency shall be used for the purposes mentioned in section 45 of this Act. B. DEPOSIT MONEY
Definition.
Section 61
SEC. 61. Definition.—For the purpose of this Act, the term "deposit money" means all those liabilities of the Central Bank and of other banks which are denominated in Philippine currency and are subject to payment in legal tender upon demand by the presentation of checks.
Issue of deposit money.
Section 62
SEC. 62. Issue of deposit money.—Only banks duly authorized so to do may accept funds or create liabilities payable in pesos upon demand by the presentation of checks, and such operations shall be subject to the control of the Monetary Board in accordance with the powers granted it with respect thereto under this Act.
Legal character.
Section 63
SEC. 63. Legal character.—Checks representing deposit money do not have legal tender power and their acceptance in the payment of debts, both public and private, is at the option of the creditor.
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Source: Official Gazette of the Republic of the Philippines — Philippine laws are public documents (works of the government).