Bangko Sentral urges Pinoys to use coins

Bangko Sentral ng Pilipinas is urging Filipinos to use coins as a way to avoid a shortage and mitigate production losses from small-denominated legal tender.

 

"What we want to do is encourage the people, everyone, to continue to use these coins. It is not cheap for BSP to produce coins as there is a cost to this," Bangko Sentral Governor Amando Tetangco Jr. told reporters on the sidelines of the 12th Citi Microentrepreneurship Awards on Wednesday.

 

"The BSP has been producing on a continuous basis significant amount of coins. And if you look at coins per capita, we have the highest in the region," he said, noting most people are keeping coins at home or in their cars.

 

Data from the BSP showed there are 21.3028 billion coins in circulation valued at P24.3589 billion as of April 2014.

 

In the Philippines, the average coin per capita is 180 pieces, way above the ASEAN standard of 50.

 

"There are 21 billion pieces with a total value of P24 billion, that's how much, are in circulation right now but some are not being used," Tetangco said.

 

"Because of the low face value to these coins, there is what you call a negative seigniorage in the point of view of BSP," he added.

 

Seigniorage is the profit made by a government from issuing currency, especially the difference between the face value of coins and the production cost.

 

"Everyone can help in the effort to have coins available by recirculating the coins, using the coins," the central bank chief said.

 

"Kahit coins lang iyon mahalaga iyon," Tetangco noted.

 

In July 2013, Iloilo Rep. Jerry Treñas filed House Bill 1662 or the proposed Anti-Hoarding of Philippine Legal Tender Coins Act of 2013.

 

Under the proposed bill, hoarding Philippine coins may become a crime with the offender facing up to P300,000 in fine and up to eight years in jail.

 

Since 2005, Bangko Sentral initiated a Coin Recirculation Program when it created the Currency Management Committee.

 

The central bank had partnered with the Department of Education, banking and retail sectors, and media outlets to promote coin recirculation. – VS, GMA News