BSP says otherwise: Stores: Coin shortage causes shortchanging

CEBU, Philippines -  Business establishments have put the blame on coin shortage as the main reason why sometimes they can’t give their customers the exact change, but the Bangko Sentral ng Pilipinas says otherwise.

While stores stressed the idea that supply of centavo coins is scarce in the market, an official from BSP said there is no shortage of coins but rather the problem lies on inefficient recirculation.

This ensued after Valenzuela City Representative Sherwin Gatchalian filed House Bill 4433 which aims to revise Republic Act 7394 or the Consumer Act of the Philippines.

If such bill is passed into law, supermarkets, department stores and other retail stores will soon be fined for not giving the exact change to their customers.

But, an official (who asked for anonymity) from Gaisano Main, Inc., a supermarket and department store company, said they are against the bill emphasizing the idea that centavo coins are scarce in the market.

"To think, it's not the store's fault di ba?" he said. "Diri sa amo mo-sacrifice na lang gud ang cashier hatag og P1 bisan 50 centavos ra sukli kay walay 25 centavos just to please the shoppers."

The official stressed the bill is "one-sided", adding that as they, retail companies, even spend millions on prizes just to promote, how much more on giving the exact change to shoppers, which only costs a few centavos.

He added they are actually in favor of giving candies as exchange for centavo coins but several stores have abused this system. 

While the company used to receive complaints and reactions from their shoppers on shortchanging, he also said that several of them have already understood that centavos are really scarce.

"One thing, why ang mga stores man ila gi-focus karon? Dapat kanang mga PUJs (Public Utility Jeepneys) pud. Klaro na gyod nang di manukli og 50 centavos for a long time. Do they pay taxes like the stores," he said.

Cherry Jonasan, cashiering supervisor of Cebu-based supermarket Prince Hypermart, echoed the same problem that they usually experience shortage of centavo coins.

"Sa piso, singko o diyes, di man kaayo problema gyod kay naa man. Ang kana lang gyod centavos maoy pwerteng nihita gyod," Jonasan said.    

Even if their company ties up with its partner banks and churches for the supply of coins, they still face centavo scarcity which relatively affects their shoppers.

However, BSP Central Visayas official Hazel Josephine Arante told The FREEMAN there is no shortage of coins.

"The problem is inefficient recirculation. Habit man gud sa public, we tend to keep man gud the coins," Arante said.

While retail stores blame the widespread vending machine businesses as main cause of coin deficiency, the BSP says otherwise.

Arante noted these vending enterprises such as Automatic Tubig Machines and "Piso-piso internet" have significantly contributed a lot to the growth of the local economy. "We don't tend to kill these businesses, but we will encourage them nga manghabwa regularly and circulate the coins."

The BSP official advised owners of vending machines to collect coins weekly -- or daily if possible -- to prevent hoarding.

This way, coins are not accumulated but are continually circulated in the market.

Arante also advised supermarkets to request for coins from their partner banks and other coin sources such as churches, owners of vending machines, among others.

The central bank also urged their member banks to regularly request for coin supply from the agency so they always have coins to give to their clients.

Statistics from BSP showed that as of January of this year, there are about 21 billion pieces of coins in circulation, 56 percent of these are the low denomination (from one centavo to 25 centavo).

On the other hand, the Department of Trade and Industry region 7 has again warned supermarkets and department stores to always give exact change to their customers to avoid receiving notice from the department.

Shortchanging can be committed by not giving exact change and giving candies (which are not legal tender) as change is a violation of Consumer Act of the Philippines.

DTI-7 Consumer Welfare Division chief Zaide Bation revealed they sent a notice letter to a pharmacy in May of this year to warn about shortchanging after receiving reports from customers.

Bation urged the public to practice their right to demand for exact change and to not hesitate to report to their agency any illegal practices on consumer rights done by retailers. The chief explained that while some business establishments would say that they have difficulty in getting coins from banks, the BSP has reiterated its declaration that there is enough coins in circulation.  (FREEMAN)