Dear Editor,

A few years ago I wrote a piece for publication in the media, ‘When a dollar is worth less than a penny’, basically commenting on the uselessness of coins in the Jamaican context, given the devaluation and declining worth. These coins are bulky to carry and use.It now takes aproximately Jamaican $130 to equate with US$1, so the coins, for the most part, are worth pennies, or nothing at all.Fast-forward several years later and it is not surprising to hear that a coin shortage exists; this according to the Bank of Jamaica. We understand from Bank of Jamaica Governor Brian Wynter that the central bank is investigating the circumstances leading to the shortage and decline in coins. He also announced that the Bank of Jamaica will embark on a coin collection drive. I believe that the answers to their questions should not be hard to find. Consumers are not using coins, they hoard or dispose of them.While businesses will need coins to make small change, I believe some of these coins could be eliminated and prices rounded up or down by a few cents; the net effect should be worth nothing.These coins must cost a fortune to mint, store and circulate. Banks are not fond of them, neither is the commercial sector, formal and informal. Instead of embarking on a coin collection drive, the Bank of Jamaica should be more forward-thinking and take a serious look at which coins could realistically be eliminated considering value and worth.The Bank of Jamaica should spend its time more productively finding creative ways to stabilise and improve the value of the local currency. While at it, may I also suggest a review of the depositors’ insurance limit (currently $600,000), which has not been updated in 10 years. There are other types of financial institutions and other types of savings and investment products which ought to be now considered in the coverage. Increasing the limit helps to protect the average saver, which should encourage savings, while stimulating economic growth with more funds available for loans and investments. 

P Chin

chin_p@yahoo.com