Talino at Galing ng Pinoy (TGP) Partylist Congressman Jose Teves Jr. recently filed a resolution urging the
Bangko Sentral ng Pilipines (BSP) to maintain the utilization of abaca fiber in the production of Philippine bank notes.
In House Resolution No. 595 which he filed last Nov. 28, 2022, the TGP House representative noted that the Central Bank started pilot-testing the use of the PhP 1,000 polymer bank notes in the first half of 2022 in its attempt to shift from the current notes made from abaca fiber and cotton.
Except for the P1,000 polymer bank notes, all the other current standard bank notes are composed of 80% cotton and 20% abaca fiber.
He cited data from the Philippine Fiber Industry Development Authority (PhilFIDA) that showed the Philippines has been the leading source of abaca fiber in the entire world for the past 50 years, supplying 85 percent of the world’s demand for one of the strongest natural fibers in the world.
“The shift to polymer bank notes will certainly affect the abaca industry in our country,” Cong. Teves stressed, as the BSP uses 1,000 to 1,800 metric tons of abaca fiber valued at $10.8 billion for the production of current bank notes.
He pointed out that the polymer bank notes are non-biodegradable because of its composition, unlike the current abaca fiber and cotton-made bank notes which are biodegradable and environmentally sustainable.
Likewise, polymer bank notes cannot be easily recycled because it is not acceptable to plastic recyclers or millers due to its hard composition or material.
The Teves resolution has been referred to the Committee on Banks and Financial Intermediaries.