MB warns coin smuggling still rampant

The smuggling of Philippine coins out of the country continues unabated and these coins are being used to make computer parts, bullets and even kitchen sinks, a member of the Monetary Board (MB) warned yesterday.

MB Board member Ignacio Bunye said the Bangko Sentral ng Pilipinas (BSP) recently issued an advisory urging the public to report unscrupulous persons involved in the illegal use of Philippine coins, stressing that the defacement, mutilation, or the smuggling of these coins could face up to five years in prison and a P20,000 fine.

“A senior currency specialist revealed that some opportunistic people even went as far as melting 25-centavo coins and combining the by-product with other metal components to make kitchen sinks more durable,” he said.

BSP currency specialists said Philippine coins were often smuggled into neighboring Asian countries to be made into computer parts, tokens, or even bullets, he said.

Last August, the Presidential Anti-Smuggling Group (PASG) stopped an attempt to smuggle out 17.9 tons of Philippine coins worth P300 million that was bound for South Korea and misdeclared as scrap metal.

PASG chief Undersecretary Antonio Villar said a P1 coin contains 75 percent copper and 25 percent nickel; while a P10 coin contains 92 percent copper content and six percent aluminum; and a P5 coin has 70 percent copper, 24.5 percent zinc and 5.5 percent nickel.

He said the PASG and the BSP are investigating officials and employees of some commercial banks believed to be members of an international syndicate behind the foiled smuggling.

Bunye, however, said the smuggling of coins – which involves their defacement and mutilation to avoid detection at the country’s ports – ”has yet to be permanently stopped.”

The BSP also has to deal with the recent use of coins as tokens in mall amusement areas and casinos. “This is also illegal, according to the Bank’s investigation division, because coins are not able to circulate and could lead to currency shortage,” Bunye said.

“Lastly, the BSP advisory warned the public against persons claiming that the central bank purchases certain coin denominations higher than their face value,” he added. – Paolo Romero