MANILA – Studies are now underway for the possible production of PHP20 coins, which a ranking Bangko Sentral ng Pilipinas (BSP) official said would be a cost-effective move if such coins are properly recirculated.
BSP Senior Assistant Governor Dahlia D. Luna, who is the head of the central bank’s Security Plant Complex (SPC), the unit that prints Philippine banknotes and mints coins, among other functions, said they have received an instruction from BSP’s policy-making Monetary Board (MB) to render a design for this denomination.
She said the proposal was made under the current leadership based on a study by the University of the Philippines (UP), which she did not elaborate.
She said the PHP20 bill is the most used denomination among the banknotes because it is the smallest in terms of value.
Cost and designs for this proposed coin denomination is still being studied, she said, but stressed that BSP will also strengthen its coin recirculation program to maximize the benefits of using coins.
She said this proposed coin will probably be round like the other coins under the New Generation Currency (NGC).
Luna explained that while the production cost of coins is much higher than bills, for example a PHP20 bill costs about PHP2 apiece while a PHP10 coins costs between PHP5 to PHP10, coins last in circulation much longer. “But what should be considered here is the life of the coin compared to a bill,” she said.
Luna said the PHP20 bill, for one, has a life of about six months to a year while coins can last up to 15 years.
She, thus, pointed out the need to really recirculate the coins since otherwise the central bank will not be able to save on the cost for minting coins.
She said the PHP20 coins will be released either by the end of this year or in the first quarter of 2020.
Asked for the cost and release date of the proposed PHP20 coin, BSP Governor Benjamin E. Diokno said “that’s still under deliberation by the Monetary Board”.
“Will keep you posted,” he added. Joann Villanueva / PNA – northboundasia.com