THE Philippine Fiber Industry Development Authority (PhilFida) has raised to lawmakers’ attention its opposition to the Central Bank’s plan to change the country’s currency to polymer-based from abaca-cotton material.
PhilFida Executive Director Kennedy T. Costales gave to lawmakers, including Sen. Cynthia A. Villar, who chairs the Senate committee on agriculture and food, the agency’s position paper on the Central Bank’s proposed changes in the country’s banknotes. Villar earlier filed a bill declaring Catanduanes as the country’s abaca capital.
“We wanted to inform them of our position paper. We are not encouraging them to intervene but we leave that to their own volition,” Costales told the BusinessMirror on Monday.
“We just want to inform them about the recent developments that may affect our abaca farmers. They should be informed about the wrongdoings of the Central Bank,” Costales added.
Aside from Villar, Costales sent a letter also to Sen. Juan Edgardo M. Angara, who chairs the Senate Committee on Finance, as well as to Rep. Hector S. Sanchez of the lone district of Catanduanes, the country’s top producer of abaca.
“Having abaca as a component in our paper money is a great source of pride among Filipinos as it is indigenous to the Philippines. This position paper is also in support of the numerous abaca farmers and their families who are dependent on abaca for their source of livelihood,” Costales’s letter to the lawmakers read.
Plastic over abaca
Costales said losing the Bangko Sentral ng Pilipinas (BSP) market for abaca—despite it being a small fraction of the overall market of the natural fiber—could still harm farmers’ income amid the Covid-19 pandemic. Costales said the BSP buys about 100 metric tons (MT) to 150 MT of the country’s annual 65,000 MT production.
Furthermore, Costales said what is more worrisome is that BSP is sending a discouraging policy signal which is the use of plastics over biodegradable materials like abaca. Costales added that only foreign businesses will benefit from the shift to polymer, since the raw material will be imported instead of local Filipino farmers.
“The United States uses its own cotton on their dollar banknotes. Europe is doing the same. They are patronizing their own commodities and not shifting to plastics or polymers,” he said.
“Countries like Australia use polymer in their banknotes because they do not have natural fiber resources. The point is, the BSP is promoting plastics rather than home-grown commodities,” he added.
Costales noted that as it is, the advancement of digital transactions amid the Covid-19 pandemic has already reduced the number of paper bills circulating in the economy.
Joint statement
In a joint statement, Catanduanes Gov. Joseph C. Cua and Rep. Sanchez said they “strongly oppose” the shift to polymerization of the country’s banknotes, calling for a “more elaborate” dialogue with industry stakeholders.
Cua and Sanchez took notice of BSP Deputy Governor Mamerto Tangonan’s claim that polymerizing banknotes will only have “minimal” impact on the abaca industry and will only displace about 210 to 481 jobs.
“This will still affect the livelihoods of our abaca farmers and further worsen their plight, especially those who are still recovering from the destruction of Super Typhoon Rolly,” they said.
“The abaca industry is the lifeline of Catanduanes and any adverse impact on its producers, be it minimal, is a cause for alarm,” they added.
‘Railroading’
Costales has been opposing the Central Bank’s plan to shift to polymer from abaca in the materials used in printing the country’s banknotes.
Costales endorsed PhilFida’s position paper about the issue in August to the Philippine Council for Agriculture and Fisheries (PCAF), the Department of Agriculture’s consultative body.
In September, no less than Agriculture Secretary William D. Dar wrote BSP Governor Benjamin E. Diokno, endorsing the PhilFida’s position paper as adopted by the PCAF through a resolution.
“The Committee [National Banner Program Committee on High Value Crops-Fiber Crops] believes that the BSP’s plan to shift to polymer banknotes will result in economic hardships for many Filipinos dependent on abaca farming,” read Dar’s letter dated September 13, a copy of which was obtained by the BusinessMirror.
“Moreover, shifting to polymer banknotes will also be more expensive since sorting machines in banks and other financial establishments will have to be modified,” it added.
Following Dar’s communication, the central bank set a dialogue with PhilFida which was scheduled last October 25, but was cancelled at the last hour, Costales lamented. The BSP rescheduled the meeting to the second week of January 2022.
Costales pointed out that the rescheduling was made in bad faith since the central bank announced on October 25th—the supposed date of their dialogue—that it will be pilot testing the polymer banknotes in the first half of next year.
“I am wondering why not schedule it this month? Or next month? We still have two months left this year. Why January?” he said.
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Source: News Paper Radio
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