Scarcity of coins now affecting banks

CEBU, Philippines - The scarcity of small-denominated coins in circulation is already affecting the transaction activity of banks in Central Visayas.

Thus, the Cebu Bankers Club (CBC) is now requesting the Bangko Sentral ng Pilipinas (BSP) to increase the allocation of small-denominated coins in the region.

CBC outgoing president John Salas said that the group formally make a request to the BSP to increase the allocation of 25-centavo coins and one peso-coins in the system.

Salas, however said that the level of coin shortage in the Philippines is still not as alarming as the situation in other countries as RP’s coin per capita is still three times stronger compared to its Asian counterparts.

The Central Bank for its part, is now actively doing measures to prevent the coin-shortage situation from worsening by encouraging the public not to hold on to their coins longer than they should and that the efficient circulation of the coins is necessary to the country’s financial system.

BSP-7 officer-in-charge Maria Luz T. Berciles said that the allocation of coins in the region is sufficient. However, coins in circulation are slowly declining caused by coin hoarders who are mostly operating vending and gaming machines.

Berciles added that the Central Bank is set to manufacture new coins by 2014, which is why there is a need to flush out all coins that are now being kept in piggy banks and vending machines such as ATM (automated tubig machine), Piso-Piso Internet, P5 coin operated Karaoke, and the video karera machines.

Unless these coins are put back in circulation, the Philippines is bound to face a coin shortage crisis, which will certainly affect the consumers. 

Through its National Coin Recirculation Program, BSP is also asking the participation of the banking sector to be pro-active in its campaign to encourage the public to keep coins in circulation.

BSP also urged the banking sector to provide and accept coins from retailers, individuals, NGOs, and invest in facilities that will ensure the smooth flow of coins within the economy.

“BSP continues to upgrade and expand its capacity to print our banknotes and mint our coins to cope with our growing population and economy,” said BSP director for corporate affairs Fe M. De La Paz.

She said while the use of credit cards and debit cards continues to rise, cash remains the payment of choice in the Philippine economy.

“And because it is true that it is more economical for us to print our money than to outsource it, the BSP is investing in new printing and minting equipment,” De La Paz said.