Please Do Not Ignore Smaller Denomination Coins

Most of us Filipinos today are now ignoring to accept smaller denomination coins such as 1 cent, 5 cents and 10 cents, or using it to pay products and services.

How many times you saw jeepney drivers refused to accept fare in coins with 10 cents? How many times you went to a store and store owners refused to accept your holed coins because they are reportedly not accepted by bigger businesses such as gas stations and supermarkets? And how many times you saw people laughed when they received 1 cent, 5 cents and 10 cents? These are only few scenarios that the smaller denomination coins were ignored and perceived as a kind of joke.

It seems that these coins have no value. But according to BSP, it is farthest from the truth. How come these little coins have no value when the BSP spends 6 cents for every 1 cent minted at the Bank’s Security Plant Complex? That’s 500% percent more than its face value!

We have to realize, that these coins have far more value than its face value. And it’s right that they still be used in financial transactions. If the 5-centavo coin is not around, businessmen would round off prices to the next higher value. For example, a commodity which should only cost P1.95 would then be charged at P2.00.

One centavo, 5 centavos and 10 centavos maybe a smaller denomination coins but these humble coins play an important role in the Philippine economy by keeping prices down.