Ched Rick Gatchalian

Article (news)

Gov’t to study proposal on demonetization of P1000 bills to curb corruption: Malacañang

Katrina Domingo

ABS-CBN News

<p>MANILA — The government is set to review the effects of the proposed demonetization of P1,000 and P500 bills to deter graft and corruption in government, Malacañang said on Tuesday.</p><p>The Palace issued the comment a day after the Bangko Sentral ng Pilipinas (BSP) thumbed down the proposal of former Department of Finance (DOF) Secretary Cesar Purisima, saying that the move would warrant “more damage than benefits.”</p><p>“Ibabato ko muna po ang katanungan sa DOF para po mas detalyado ang answer na iyan,” Communications Undersecretary Claire Castro said in a Palace press briefing.</p><p>“Pag-aaralan po kasi kung hindi ito makakabuti at may negatibong epekto po ay pag-aaralan po para mabalanse po iyong mga pros and cons ng sina-suggest na ito,” she said.</p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2025/10/14/corruption-issue-starting-to-affect-tax-collection-growth-dof-chief-1433">Corruption issue starting to affect tax collection growth: DOF chief</a></div><p>Purisima pushed the said proposal in September after congressional investigations found that contractors and government officials involved in anomalous flood control projects have been pilfering public funds using high-denomination bills.</p><p>BSP Governor Eli Remolona earlier said that removing high-denomination bills would affect other individuals who have nothing to do with corrupt and illegal practices.</p><p>Instead of demonetizing P1,000 and P500 bills, the BSP issued a circular mandating transactions above P500,000 to go through traceable channels such as checks, online transfers, or digital payments.</p><p>The Central Bank has also required banks to report transactions of P500,000 or more, and flag these as suspicious transactions.</p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2025/9/2/ph-economy-lost-over-p100-b-to-ghost-flood-control-projects-from-2023-2025-recto-1859">PH economy lost over P100-B to &#x27;ghost&#x27; flood control projects from 2023-2025: Recto</a></div>

<p>The government is set to review the effects of the proposed demonetization of P1,000 and P500 bills to deter graft and corruption in government, Malacañang said on Tuesday.</p>

The government is set to review the effects of the proposed demonetization of P1,000 and P500 bills to deter graft and corruption in government, Malacañang said on Tuesday.