Shortage on Philippine coin circulation boils down to lack of respect
by Rachelle M. Nessia
The case of the seemingly vanishing Philippine coins have left businessmen and officials of the government monetary authority scratching their heads.
During a recent forum in Dumaguete City sponsored by the Bangko Sentral ng Pilipinas (BSP) Dumaguete Branch, a local gasoline station owner spoke up about his dillemma with coins. "In our station, we have a problem getting 25-centavo and 10-centavo coins. We need them to hand out the exact change," he said. After a pause, he added: "I believe these coins are extinct already."
But the figures from BSP, which mints the Philippine money, sing a different tune - one that insists there is no actual shortage in the supply of coins in the country, especially the 25-centavo and 10-centavo coins. According to the website of BSP, which mints the Philippine money, "there are about 16.32 billion pieces of coins valued at P18.21 billion...that had been issued as of December 31, 2010." More than 16 billion coins released to the public and yet cashiers still round off the costs when they ring up the goods bought by customers because they don't have the needed centavos.
Negros Oriental, just like other provinces in the country, have also been flooded with millions of coins. According to Victoria B. Gonzaga, Cash Operations Division Manager of BSP-Dumaguete, the central bank has issued around 25.5 million pieces of 25-centavo coins and 20.6 million pieces of 10-centavo coins between 2005 to 2010. “All these coins should be circulating in the province by now,” said Gonzaga.
In fact, residents in Dumaguete City alone should have their pockets bulging with coins. “Based on the records provided to us by the National Statistics Office, the population in Dumaguete in 2007 is 116,392. Let's say this has increased to 200,000 now. If you divide that number by the amount of the volume of coins we have issued, each resident in the city should have 400 pieces of coins,” explained Gonzaga.
Why, then, is there a shortage in coin circulation here? Gonzaga has a simple answer: “It's very sad to say this but we Filipinos don't have much respect for our coins.” She said that most likely, the coins are idly stored in jars or inside piggy banks or piling up inside drawers and cabinets. “This just goes to show that we don't give our coins much value and it is very regrettable,” she lamented.
The BSP officer explained that the seemingly casual attitude of Filipinos towards their coins can be seen from the number of coins lying on the city streets in the downtown district of Dumaguete. “When I walk along Perdices Street, I often see a lot of coins just lying around. Nobody picks them up, to the extent that some of these coins have remained stuck on the pavement,” she said.
Last year, the central bank launched a nationwide information drive in an attempt to flush the coins out from their usual hiding place- inside people's homes. In a forum held at Bethel Guesthouse in March last year, BSP Dumaguete Branch Manager Nicasio Parco stressed: “There is no problem in the coin supply but rather in its circulation.”
BSP has repeatedly stressed in its awareness campaign that consumers must cultivate a habit of regularly using coins in paying for goods and services and for cashiers to give the exact change in order to end the coin circulation shortage. This, according to central bank, can only be done if the public recirculates the coins and accept them as legal tender.
The central monetary agency also started a coin-recirculation program to promote the regular use of coins and at the same time raise funds to benefit public elementary schools through “Tulong Barya Para sa Eskwela” campaign and the “Tulong Barya Para sa Gawad Kalinga” to help the needy for their shelter needs.
The central bank spends several millions of pesos to mint a fresh supply of coins, and it will be forced to produce more if the coins remain poorly circulated. A BSP official has previously noted that if the central bank cuts down on its coin production, the savings from this will revert to the national government in the form of dividends that will be used to fund basic services and infrastructure such as schools, hospitals and health centers.
Like Gonzaga said, this will only happen if Filipinos show more respect to their coins. When that time comes, we can cross off the 25-centavo and 10-centavo coins from the endangered list and finally close the file on the case of the disappearing Philippine coins. (RMN/PIA Negros Oriental)