Maybe I wasn’t reading enough. Or maybe I was fast asleep in a comfortable little corner in my little world when the universe opened up to a brand new era.
Or maybe I just had become so enamored with the idea of saving up – meaning, saving up however small – that I had not realized my now six-month habit of keeping coins in a piggy bank had been hurting the economy.
Image courtesy of Michael Elliott / FreeDigitalPhotos.net
I came across an article on Yahoo! a few days earlier about the Bangko Sentral ng Pilipinas’ appeal to the public to stop hoarding coins. Now the stubborn little voice in me was insisting I wasn’t hoarding coins because I plan to put the money in the bank eventually anyway.
That is, the moment my little piggy bank refuses to take any more coins. The way things are going, that will take me, give or take, a month more.
What is coin hoarding?
Because I needed to be proven incorrect, I had to do some research. ABS-CBN reported in February of last year that the BSP had said that the age-old practice of feeding a piggy bank with loose change may not be doing the overall economy any good as this creates an artificial shortage of coins.
Keeping the coins out of circulation forces the Central Bank to mint more coins to address consistent requests from banks, which consequently entails additional costs.
Piggy bank keepers are not the only ones guilty here. Even charitable institutions that put tin cans at malls or fast food chains or MRT stations for donations are being appealed to by the BSP to immediately take the money collected to the bank, so they would get back into circulation.
Also, mb.com.ph reports that one of the causes of poor re-circulation of coins is the use of coins as tokens for so-called “automated tubig machines,” video games and videoke machines.
Some others use them as accessories. Others melt them for metals. And some others simply ignore them, especially the lower denominations, and put them in places where they are left to be forgotten.
Coin demonetization
Okay, here’s the clincher. Manila Bulletin’s online newspaper, mb.com.ph, reported on March 31, 2011 that “the BSP will demonetize all denominations of coins in preparation for new designed coins for circulation beginning next year.” Demonetization, according to Merriam-Webster Online, means the deprivation of value for official payment.
Sheesh, that would be a real bummer, wouldn’t it?
So now my little pig in my closet would have to cough up the coins earlier than planned. And yes, the coins would all go straight to the bank. And I still would keep my head up high even if the bank teller who would transact with me and my coins starts throwing furtive glances at me for giving her more work for that day.
That had happened to me before, and I don’t see any reason why it wouldn’t happen again. Well, I’m now armed with information, and I sure am willing to give the teller a word or two about the BSP’s appeal to put more coins in circulation.
In support of the BSP’s plea, I have deleted my previous post entitled “Pig in My Closet,” and made some edits to other posts that encouraged the use of piggy banks. In this light, however, piggy banks, in my opinion, may still be used provided the money collected will immediately go to the bank, or perhaps spent for daily needs.
And by immediately, I mean, three days?
I think I’m going to need your opinion on that. So what’s your definition of immediately in this scenario?
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I used to be…but I spent all of them recently ^_^
at least, you’re helping the BSP cut down on their expenses … but it would really be wonderful if saving is as easy as spending, ano?
2 or 3 years ago when I’m in PH, a jeepney driver told me (am seated at the front) that some * factory somewhere in valenzuela buy those precious coins, then melted them to be use as part of some computer hardwares or mixed with other metals. I’m not sure if it’s true, but he also told me that he’d once sold some of his saved coins. 🙁
*other nationality
@ Ariston … thanks for visiting! It actually is true. A lot of people do what you just said. But then again, it’s against the law. And based on what we now know about coin hoarding, it hurts the overall economy. If the economy continues to hurt, we, the average consumers, are the ones most affected. 🙁
People actually never hoard the PH coins with less value. But I don’t know why the country is run out of those coins. We already experience the scarcity of these coins when we buy something in the mall or small sari-sari store which couldn’t give you your change. Instead the tindera or the cashier will give a piece of candy as a change, which it should not be for it is not a tender of exchange.
Gil Camporazo recently posted…12 Round of Fruits: The Truth and Falsehood
I think what’s happening is that people simply ignore the coins with less value. 🙂
Maricel recently posted…To Niche or NOT to Niche: What Bloggers Are Saying
they should try to communicate to everyone about this demonetization because it will mostly affect the poorest of the poor… poor folks don’t always keep their money in banks… they keep it in their alkansiya’s… if they are not informed then it will be a big blow for them, financially…
R.O.M.E.L.O. recently posted…Just Watched The Entire America’s Got Talent Season 7 In YouTube
Yes, they probably will before they start doing such a thing. Like you said, it’s going to hurt a lot of poor people.
Maricel recently posted…What Exactly Is Content Marketing?
I collect coins but when the piggy bank is full 🙂 I roll the coins with the paper and deposit it in the bank 🙂 it helps especially when I need money for emergency 🙂
Jessica Cassidy recently posted…How do you celebrate the New Year?
That’s the best way to do it, in my opinion, Jessica. 🙂
Maricel recently posted…To Niche or NOT to Niche: What Bloggers Are Saying
Guilty as charged so now I’m starting to lose the coins and pay some of my bills and groceries in coins.
Franc Ramon recently posted…Call Me Fearless
Exactly the same thing I did when I heard of the news. Today, I no longer put coins in a piggy bank. 😀
Maricel recently posted…Twitter, a Newbie and the Art of Unfollowing
lol i should be glad that i never really became fond of putting coins in piggy banks. Whenever i attempt to save coins, i always end up using it as “pamasahe” so I gave up on that idea.
Clare recently posted…Letters, Numbers and Books
Well, that can really happen, Clare. But putting coins in a piggy bank, for most people, is the easiest way to save. Then again, it should be remembered that the coins shouldn’t be kept in one place for far too long. This way, we get to help keep a balance in the economy, too. 😀
Maricel recently posted…1 Little Girl + 1 Raffle Ticket = 3 Important Life Lessons
Never really thought of this hoarding aspect in relation to putting coins in a piggy bank. People should be made more aware of this.
Teresa Martinez recently posted…Believing in the Existence of Santa Claus
Same here. I wasn’t really aware until I read it in the news. Indeed, the government should try more effective ways of disseminating information.
Maricel recently posted…How to Spend Less on Gifts This Holiday Season
Guilty too! I guess, we should use it right away, put it in the bank or give it away. Time to help the economy in our own little ways!
Gemma|My Dailies recently posted…Peace to all!
I’m going to have to agree with you, Gemma, 100%!
Maricel recently posted…Where Will You Be on December 21, 2012?
guilty, since i do have kids having their “alkansya” filled with coins… yup, agree, it should circulate. i’m talking them into saving it to the bank. happy new year, cel. Yahweh bless.
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