BSP’s cash servicing initiative wins international award

The BangkoSentralngPilipinas (BSP) initiative that ensures continuous servicing of the public’s cash requirements was cited as the “Best Currency Initiative Implemented in Response to the COVID-19 Pandemic (Central Banks Category)” by the International Association of Currency Affairs (IACA).

IACA, an organization whose goal is to provide for international exchange for consultation and collaboration on matters of interest to stakeholders in the cash payments cycle^[1], announced the award during the “2021 Excellence in Currency Awards” held virtually on September 23.

The winning initiative, Cash Service Alliance (CSA), is BSP’s partnership with the Bankers Association of the Philippines to ensure that cash servicing operations are undisrupted and strategic amid restrictions during the pandemic.

“The international recognition is a testament to the tireless efforts of the BSP and collaborative partnerships with key stakeholders to ensure undisrupted service to the Filipinos,” said BSP Governor Benjamin E. Diokno.

The BSP’s CSA Team is composed of Alvin Molo, Jann Ryan Jose, Marc Ferdinand Garcia and project proponent Deputy Director Ralph Meris. Director Ruth Gonzaga of the Greater Manila Regional Office and former Managing Director Josefa Elvira Ditching-Lorico supervised the CSA Team.

The CSA has enhanced efficiency in servicing the cash needs of the public as it enables the direct exchange of fit currency between banks amid the challenge of transporting cash during lockdowns. In relation to this, the BSP manages an online facility wherein banks post their cash requirements and available holdings; and matches the direct exchange.

Banks withdrew all their fit cash requirements from BSP before rollout of the CSA, which is implemented under a BSP Circular issued in October 2020.

BSP data for the first semester of 2021 showed that more than 30 percent of fit currency requirements of banks in Metro Manila were already sourced through the CSA. Banks also observed reduced trips to and from the BSP and savings in service fees.

“Congratulations on winning the IACA award on the Bank’s excellent initiative.  The project is exactly the kind of innovation we were looking to share with the currency community,” said IACA Executive Director Eugenie Foster.