Gregorio E.

Baccay III, DPA

Think Out Loud

Email: gregbaccay@gmail.com

Coin recirculation is a must

Last week I bought some personal needs from one of the retail establishments in the city and
experienced of not being given exact change. I asked the cashier for my 15 centavos change, but was
denied, prompting my blood pressure to rise. Being a Bangko Sentral ng Pilipinas employee, I politely
reminded her of the importance of coins in circulation as well as the “No Shortchanging Act of 2016” which
prohibits business establishments to shortchange consumers. I also enumerated to her the penalties should
the establishment fails to give exact change. When I was done talking and informed her that I came from
the BSP, she gave me P1.00 as my change, more than my supposed change of 15 centavos, of which I
refused to receive anyway.

Well, it becomes a common scenario that retail establishments including sari-sari stores are not
providing exact change to consumers. The law is very strict to violators as it provides that first time violators
will suffer a fine from a minimum of P500 or 3% of the gross sales on the day of violation up to a maximum
of P25,000 or 10% of the gross sales on the day of violation whichever is higher, and worst, the possible
suspension or revocation of the license to operate on the third and fourth offenses respectively. The law
has enumerated three prohibited acts, namely: shortchanging a consumer, even if such change is only a
small amount; changing in any form other than the present currency (i.e. candies); and, asking the
consumers’ permission to not give change due to non-availability of coins. Granting the presence of the law,
can we enforce it given the fact that indeed the retail stores have no available coins for change? This is
usually the alibi of business establishments that there is no enough supply of coins in circulation. But the
public is wrong in this perception. As of 31 August 2018, the BSP has minted 27.8 billion pieces of coins, of
which 56% are low-denomination (i.e. 1-, 5-, 10-, 25-sentimo) valued at P 31.2 billion pesos in circulation.
There is no actual shortage of coins as the number of coins in circulation is equivalent to 271 pieces per
Filipino.

Artificial shortage of coins may occur because of the common practice by people of keeping coins
idle in piggy banks, drawers, wallets, jars, etc. and not recirculating them. Recently, there is also increased
demand for 1-piso coins due to their use in “Automatic Tubig Machines” and coin games (Piso Net) which
contribute to inefficiency in the circulation of coins. To address the perceived lack of coins by the public,
the BSP launched the Coin Recirculation Program to promote regular use of coins. The BSP Dumaguete
Branch conducted the coin recirculation project last January 29-30 at the City Government of Dumaguete
and the event yielded more than 100,00 pieces of coins back to circulation. The activity was dubbed
“Bansili” where the public can exchange their idle coins to new banknotes and then collected coins are
being distributed to retail establishments for recirculation. The public is also reminded to note that coins
have maximum legal tender as 1-, 5-, and 10-piso coins can be used only up to P1,000.00 while 1-, 5-, 10-,
and 25-sentimo coins shall be legal tender in amounts not exceeding P100.00 pursuant to BSP Circular 537,
series of 2006. Let it be known also that the cost of minting a coin is higher than its value, making every
coin counts.

As concerned Filipinos, it is our duty to support the programs of government. The non-recirculation
of coins will give the government more expenses for the minting costs, hence, it is our call to use them for
the benefit of all. Are you one among those who hoard coins? Are you one among those who just throw
away 1-, 5-, 10-, and 25-sentimo coins? Are you one among those who don’t care about these coins after
all? Hala ka, bantay ka, kay gaba-an nya ka!