Osmeña files bill vs. coin hoarding

By , on November 25, 2014

Shutterstock Photo
Shutterstock Photo

MANILA – Sen. Sergio Osmeña III has filed a bill on penalizing people who hoard legal tender coins of Philippine currency.

Osmeña noted in the Senate Bill 2452 that the Bangko Sentral ng Pilipinas (BSP) has recorded cases of deceitful hoarding and exportation of coins by syndicates. These people convert and smelt coins for their metallic value and use them as raw materials for computers, mobile phones, and other industrial applications.

Most tender coins of Philippine currency are made from copper, brass, nickel, aluminum or steel. The high prices for these metals has led to debasement of the currency.

Osmeña said that he expressed his concern for the government given that it would entail outlay of funds just to replace the current coins in circulation.

He also mentioned that there is an increasing demand for one peso coins because of vending machines and video karera machines. Using the coins in such games as well as storing them in piggy banks will lead to shortage in coin circulation.

“To curb the hoarding of Philippine legal tender coins, this bill proposes to criminalize coin hoarding or the keeping or possessions of coins of any denomination beyond aggregate value, number of pieces and weight to be determined by the BSP committed by any person, corporation or partnership, association or any form of juridical personality,” Osmena said.

Exempted from the bill’s coverage are charitable institutions, private banks, banking and financial institutions of the government, and government agencies and instrumentalities are exempted from the bill.

Under the bill, the Central Bank is also given full authority to change and review the amount every three years based on the value, supply, and demand of legal tender coins.