CEBU, Philippines – Despite the P12 million worth of one peso coins added by the Bangko Sentral ng Pilipinas in circulation, Cebu province still feels the scarcity of coins in the system.
BSP-7 regional director Maria Luz T. Berciles reiterated the agency's call for consumers to circulate idle coins, in order to promote healthy monetary exchange between the consumers and the establishments.
Because of this, BSP together with the Cebu Bankers Club (CBC) will host a Fun-Run campaign to promote awareness for coin distribution in Cebu, calling on all running enthusiasts to support the campaign, and bring in their coins to get registration discounts.
Berciles said that there is a need for consumers to circulate the coins in the system, as it could ultimately affect the consumers.
She said if the system is experiencing shortage of coins in the circulation, consumers will be forced not to get their centavos change from retail outlets, transportation facilities, thus affecting the cost of living in the long run.
Shortchanging has long been discouraged by the Department of Trade and Industry, however with the scarcity of coins in circulation, more and more consumers have become victims of shortchanging.
Berciles also urged consumers to break the culture of keeping piggy-banks at home, as this is considered as coin hoarding activity.
"It is very important that we will not keep our [available] coins at home, or let it idle for some time. It has to be circulated in the system. Otherwise, consumers will also become the victim of this activity," she said.
To heighten the awareness, CBC in strong support from the BSP will be holding the "Fun Run for Coin Re-circulation Awareness" on December 12, 2010.
CBC president Chito Cabaero said there is a need for the major industry players to harness the economic value of 'lost" or "idle" coins which are just lying at home, or in piggy banks, thereby affecting the trading activity.
Aside from the P12 million worth of one peso coins that was recently delivered in Cebu to avoid imbalance in the trading system here, Barciles said another batch of coin denomination will be delivered to Cebu in the coming weeks.
In the third or fourth week of November, lower denominated coins will be poured to the system. And by December other denominations of five, 10 and 25 centavos denominations of coins to be will infused in the system.
In a severe coin shortage scenario, the consumers can not move anymore. Scarcity of coin within the system is detrimental to daily movement of consumers, commuters, and traders.
Before, the Philippines or Cebu could experience this state, BSP-7 together with CBC are actively moving in order to maintain a healthy trading system.
As of December 2009, there were 15.6 billion pieces of coins with a total face value of P16.9 billion. About 88 percent of total coins in circulation are low-denomination coins; the 25 centavos, 10 centavos, five centavos, and one centavo.
Based on 15.6 billion coins in circulation as of December 2009 and an estimated population of 92.2 million, the ratio of coin to population is 169 coins for each Filipino.
If BSP will include the 8.7 million Filipinos working abroad, the ratio moves up to 186 per head. (FREEMAN)