As Filipinos prepare for the Christmas rush, the Bangko Sentral ng Pilipinas (BSP) is reminding the public that exchanging unfit or worn banknotes at banks is free of charge, while encouraging greater use of digital cash gifts or “e-aguinaldo” to meet rising seasonal demand.
The advisory comes as demand for new bills and coins traditionally spikes in the weeks leading up to Christmas, driven by holiday shopping and the long-standing Filipino tradition of giving cash gifts to godchildren, relatives, and loved ones.
The BSP urged the public to transact only with BSP-authorized banks when exchanging old or damaged notes, warning against individuals or informal operators who charge so-called “service fees” for the same transactions.
“Exchanging unfit banknotes through banks is free,” the central bank said in a media advisory, adding that authorized financial institutions are equipped to process currency exchanges safely and efficiently.
BSP: There’s fresh cash supply for the holidays
To support increased cash usage during the Yuletide season, the BSP said it has continued producing fresh banknotes and coins, ensuring that banks are adequately supplied to meet public demand.
The availability of new currency is crucial during the holidays, when consumers typically withdraw more cash for gifting, travel, and end-of-year expenses. Fresh bills are also preferred for aguinaldo, making them a seasonal staple in bank branches nationwide.
The central bank noted that its currency operations are designed to ensure smooth circulation, prevent shortages, and maintain public confidence in the peso during peak periods.
At the same time, the BSP reiterated that the public should remain cautious when handling cash, particularly during crowded holiday transactions, where the risks of loss, theft, or counterfeit bills and text hijacking scams are higher.
Digital aguinaldo gains ground
Beyond physical cash, the BSP is once again pushing for the adoption of digital or e-money gifts, citing convenience, security, and efficiency.
Sending aguinaldo through e-wallets, mobile apps, or online banking platforms allows users to transfer funds instantly without needing to withdraw or handle cash. Digital transfers also reduce the risks associated with carrying large amounts of money during the busy holiday season.
“Using e-wallets and online banking offers a safe and more convenient way to send cash gifts during the Christmas season,” the BSP further stated.
The renewed push aligns with the central bank’s broader goal of increasing digital payment adoption under its Digital Payments Transformation Roadmap, which aims to shift a significant share of retail transactions to electronic channels.
Convenience meets financial inclusion
Industry observers note that e-aguinaldo has gained traction in recent years, particularly among younger Filipinos and urban households, as mobile wallets and digital banks become more widely used.
Digital cash gifts also offer greater flexibility for recipients, who can choose to save, spend, or transfer funds without needing to visit a bank branch or money changer.
For parents and godparents, e-money provides an easy way to manage multiple recipients, track transfers, and avoid last-minute trips to the bank during the holiday rush.
At the same time, the BSP emphasized that physical cash remains an important part of the financial system, particularly for communities with limited access to digital infrastructure. Ensuring the availability of fresh currency, the central bank said, remains a priority alongside efforts to promote cashless alternatives.
A hybrid holiday approach
As the Christmas season approaches, the BSP’s message is clear: both cash and digital payments have a role to play.
Consumers are encouraged to exchange worn bills only at authorized banks, avoid paying unnecessary fees, and consider digital channels for sending holiday cash gifts. By combining traditional practices with modern payment options, Filipinos can enjoy a safer, more convenient, and more efficient holiday season.
Whether through crisp new bills or a quick mobile transfer, the BSP said its goal is to ensure that the spirit of giving flows smoothly — without added cost or risk — during the most festive time of the year.