R.A.

8123
AN ACT TO ASSURE UNIFORM VALUE TO
PHILIPPINE COIN AND CURRENCY

History of the Law

R.A. 529 (June 16, 1950)
Purpose: The value of
Philippine coin and currency
affects public interest and is act in order to encourage
subject to regulation by the
Congress of the Philippines.
According to this Act, the
agreement to pay the
obligation in a currency
other than Philippine
Currency is null, void and
contrary to public policy.
The most that can be
demanded of a debtor is to
pay his/her obligation in the
Philippine currency to be
measured in the prevailing
R.A. 4100 (June 19, 1964)
Purpose: Section 1 of R.A.
529 was repealed by this
foreign investments and to
cope with the requirements
of international trade and
banking transaction.
According to this Act, the
prohibition to settle money
obligation other than
payment of Philippine
currency shall not apply to
the following:
(a) transaction
where the funds
involved are the
proceeds of loans or
R.A. 8123 (June 1996)
Purpose: Repealed the law
to adopt to the changing
times. Lifted the
prohibition on the payment
of money obligations by
other currency than
Philippine currency.
According to this Act, all
monetary obligations shall be
settled in the Philippine
currency which is legal
tender in the Philippines.
However, the parties may
agree that the obligation or
transaction shall be settled
in any other currency at the
time of payment.

exchange rate at the time investments made Legal tender is defined as

the obligation was incurred.
A creditor cannot oblige the
debtor to pay him in
dollars, even if the loan
were given in said currency.
The payment in this case
should be expressed in
Philippine currency on the
basis of the current
directly or indirectly, the money which a debtor
through bona fide may compel a creditor to
intermediaries or accept in payment of a
agents, by foreign debt whether public or
governments, their private. Legal tender of the
agencies and Philippines would be all
instrumentalities, and notes and coins issued by
international financial the Central Bank.
and banking

exchange rate at the time institutions so long as

of the payment. the funds are

identifiable, as having
emanated from the
 sources enumerated
above;

(b) transactions
affecting high-priority
economic projects for
agricultural, industrial
and power
development as may
be determined by the
National Economic
Council which are
financed by or
through foreign funds;

(c)forward exchange
transaction entered
into between banks or
between banks and
individuals or juridical
persons;

(d) import-export
and other
international banking,
financial investment
and industrial
transactions

Art. 1249 NCC. The payment of debts in money shall be made in the currency stipulated,
and if it is not possible to deliver such currency, then in the currency which is legal
tender in the Philippines.