DAGUPAN CITY (PIA) – The Bangko Sentral ng Pilipinas (BSP) is encouraging the public to deposit their coins in banks instead of storing them in traditional piggy banks, in order to help improve coin circulation and support economic activity.
Under its Coin Recirculation Program, the BSP wants to make sure that coins are used in daily market transactions. This initiative addresses the problem of idle coins that remain stored in households and are unavailable for broader circulation, particularly in areas with high demand for small denominations.
According to the BSP, as of October 2024, the agency had collected over P1 billion in coins, signifying the successful recirculation of idle currency into the economy.
Benefits of bank deposits
Speaking during a Pantongtongan Tayo (Let’s Talk About It) virtual presser hosted by the Philippine Information Agency (PIA) Pangasinan on January 15, Jim Ian Bautista, senior research specialist of BSP North Luzon Regional Office, emphasized the importance of circulating coins rather than allowing them to accumulate and remain unused.
“As much as possible, if you want to save, let us save it in the bank so that our coins do not just accumulate in jars, piggy banks, and other containers. They are circulated so that others can also use them,” he said.
While traditional saving methods are not discouraged, the BSP highlights several advantages to depositing coins in banks:
- Improved Circulation – ensures coins are available for transactions and reduces shortages.
- Security – safeguards savings from theft, damage, and loss.
- Earnings Potential – allows savings to earn interest and grow over time.
By keeping money in the formal banking system, the BSP aims to strengthen the economy and ensure that coins are effectively used for public purposes.
Coin deposit machines
To support its program, the BSP launched Coin Deposit Machines (CoDMs) in June 2023, offering the public an easy and secure way to deposit coins. These machines, currently available in 25 partner retail locations in the Greater Manila Area, aim to:
- Reduce idle coins
- Promote efficient coin recirculation, and
- Address coin shortages for small transactions.
This move aims to mitigate the negative effects of coin shortages on both businesses and consumers, as small transactions frequently depend on the availability of sufficient coins.
To date, Bautista said that the Ilocos Region has no CoDMs, and hopes to expand their deployment in the region to meet the growing demand for easy coin deposit options.
“If we have loose change, we can deposit it in banks or use it for payments. If we want to save money, we can open a bank account, as it can earn interest,” Bautista advised residents of Ilocos who wish to deposit their coins.
The CoDMs reject fake coins by detecting irregularities in size, weight, and metal composition, ensuring that only legitimate currency is deposited and preventing counterfeit coins from entering circulation, thus maintaining the integrity of the monetary system.
By depositing coins in banks, the public not only helps alleviate shortages but also strengthens the financial system. (CCMT/JCDR, PIA Pangasinan)
