No to coin hoarding, yes to coin re-circulation: BSP PDF Print E-mail
Friday, 09 May 2014 11:30

Have you ever experienced receiving your change or “sukli” in terms of candies instead of coins?

As of January 2014, the Bangko Sentral ng Pilipinas minted a ratio of 257 coins per Filipino resident. However, the country is still facing an alarming shortage of coins. Non-circulation of coins among the consumers is perceived to be the culprit of this problem.

The BSP regional offices are advised to take an active part in the Coin Recirculation campaign. The Bangko Sentral ng Pilipinas Zamboanga Branch has been reaching out to the public to promote awareness on the Security Features of the Philippine Currency and Coins Recirculation.

Non-circulation of coins has a lot of negative effects to the public and on the economy. The Philippine Government is spending millions of pesos to mint coins. The cost of minting the coins is higher than its face value. Thus, the public is encouraged to re-circulate coins. If all coins are properly re-circulated, the BSP will be minting less coins, hence, a lot of savings for the government .

Hoarding of coins will indirectly result to inflation. If 80 million Filipinos store P10 worth of coins each regardless of denomination, then an equivalent of P800 million remains uncirculated in the system. This will result to an increase in the prices of commodities.

The public is advised to deposit their coins in their depository bank. This way, said bank may also issue these to other depositors / consumers. The public may also use coins in purchasing goods . Pharmacies, supermarket stores, among others will find low-denomination coins useful in their daily business transactions.

The Bangko Sentral ng Pilipinas Zamboanga Branch supports this campaign through the Coins for Trees Program, among others. On July 20 of last year, the BSP Zamboanga Branch spearheaded this event, together with various government agencies, non-government organizations, schools, and private establishments, by selling seedlings for P50 each. Only low-denomination coins (from 0.01 centavo to P1.00) are accepted as payment. The 1-, 5-, and 10-centavo coins are treated as 25 centavos to allow people to buy more seedlings. This was held at the Cesar Climaco Park, Abong-Abong, Zamboanga City. This year, the Branch is planning a similar activity on the month of July 2014. More participants are expected to join the program to support this advocacy. — BSP-Zamboanga Branch