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Published on March 14, 2008

Deputy Finance Minister Ranongrak Suwanchawee yesterday visited the Treasury Department and told them to find ways of getting more Bt1, Bt2, Bt5 and Bt10 coins into circulation.

It seems that not all of the total of 30 billion coins minted are being spent.

According to the Treasury Department, 10 per cent are kept idle in piggy banks or donation boxes at temples, schools and hospitals.

In addition, of the total coins circulating in the economy, 45 per cent are barely used as people leave them at home or keep them in their pockets and forget about them.

When people take coins to banks to be exchanged for bank notes, they are charged a coin-counting fee.

Of all the small change, Bt1 coins cause the biggest problem as these are the most forgotten. In addition, the cost of Bt1-coin production is relatively expensive.

According to the Treasury Department, the cost of producing the coin is higher than its face value, as the materials used are quite expensive.

Consequently, the department is planning to cut costs by changing the metal content from nickel and bronze to nickel and iron. It will also revise the production of Bt2 coins soon.

Ranongrak wants the Treasury Department to promote the use of small change because a shortage can theoretically drive inflation slightly higher.

Without small change people have to use banknotes and merchants tend to round out prices so change can be given in notes rather than coins.

Earlier, the Treasury Department assigned officials to provide a coin-exchange service in a number of places. For example, at a temple in Ayutthaya province, Bt700,000 in coins was exchanged for bank notes in a day.

However, as the number of Treasury officials is limited, the exchange service has not been pursued as much as it might have been.

So, let's raid our piggy banks and empty our pockets and put those idle coins to good use.

Jiwamol@nationgroup.com

The Nation