Coin shortage continues

It's being reported that the shortage of coins in circulation is affecting commercial activity with business operators now being forced to find creative ways to deal with the situation.

The Jamaica Chamber of Commerce (JCC) has conducted an informal survey on the effects of the shortage on its members. 

It revealed that some retailers have resorted to adjusting their prices to cope with the inadequate supply of coins.

John Robinson, Senior Deputy Governor of  the Bank of  Jamaica, last week confirmed a shortage of  coins, especially $10 and $20 denominations. This has been linked to the sharp fall in the rate of  redemption. 

“It is affecting sales, and a number of retailer establishment and vendors are in fact giving change as candy, and some of them are adjusting their prices to allow them not to have to use so much change,” Laurence Watson, JCC President, told RJR News.

The Central Bank is hoping to significantly reduce the coin shortage by early next month.

There will also be an island-wide coin collection campaign.

Watson revealed that the Bank of Jamaica was able to supply more than 95% of the demand for $20 coins and 62% for the $10 denomination in February and March.

“But by April and May this figure dropped significantly to fifteen per cent and nine per cent respectively, and I think part of the issue is the fees that are being charged by some financial institutions for input of coins,” he said.

He added that some Jamaicans traditionally use coins for saving, “and if the financial institutions are going to charge for deposits, then maybe that is what is causing the challenge.”

Fitz Jackson, a member of Parliament’s Public Administration and Appropriations Committee, last week called for the Central Bank to issue a directive to financial institutions to stop charging customers a fee to return coins.

Mr. Jackson, who has been calling for stronger banking regulations and consumer protection, is suggesting that many customers are deterred from returning coins because of the fees being charged by some institutions.