Gov’t spends $115 million to buy dollar coins

Persons may not believe that a $1 coin carries much value, but a lack of them is forcing the Government to spend big to have some made.

The Jamaican government recently approved a contract valued at J$114,020,827, from the Bank of Jamaica to the Mint of Finland to supply the local economy with 51 million pieces of $1 coins.

Governor at the Bank of Jamaica (BOJ), Richard Byles, told THE STAR that due to the low circulation of the currency, additional money is therefore being spent to acquire the dollar coins.

"Periodically, we have to buy paper money and coins, especially those coins, because people don't return them. Most times they get it for change and have it in their house," he said.

In an effort to cut back on the cost being spent on purchasing money, Byles believes a digital currency bank should be introduced.

"This is more reason why we should have a central bank digital currency which we have announced. Launching a central bank digital currency would replace, in part, notes and coins," he said

According to reports, it is estimated that re-issued coins, along with stocks that have been ordered, would not meet the economy's demand for the remainder of 2020 and moving forward.

Persons are therefore being urged to be more conscious before abandoning the currency.