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Philippine Coins Smuggled for Scrap Value
 | By Richard Giedroyc, World Coin News
March 26, 2009 |
Quetulio continued, "This is very alarming as it will affect the Philippine economy if not given preferential attention. The public must be aware that BSP determines the different denominations of our money, both bank notes and coins, and the public should accept them at face value, no more, no less."
Quetulio may be a technocrat who gives all the politically correct and patriotic statements, but Task Force Chief Undersecretary Antonio Villar is not. Following the August 2008 raid Villar stated in a television interview, "This is economic sabotage because we will soon be running out of coins!"
And, while Quetulio appealed for public support to help attain BSP's mandate by reporting any information against persons engaged in or promoting the illegal use of coins, National Bureau of Investigation Deputy Director for Intelligence Services Ruel Lasala was quoted during 2008 as saying, "Some unscrupulous groups apparently asked banks or other organizations to change their bills into coins. They later sold these to prospective buyers, who would then smuggle the coins out of the country. These shipments were often mis-declared as metal scraps."
The NBI has been investigating some bank employees who have been converting large amounts of paper money into coins for customers, who are suspected as being smugglers who then illegally ship the coins overseas.
Some Philippine coins struck between 1995 and 2003 are composed of 75 percent copper and 25 percent nickel. This makes the coins targets for recycling as scrap metal used in making computer microchips, tokens, and even bullets, according to Lasala. The newer 1-peso coins about which the rumors are now circulating are nickel-plated.
One specific target of the smuggling investigations has been Amphibian Metal, suggested to be part of a crime syndicate. In an Aug. 28 Philippine Daily Inquirer newspaper interview Lasala said, "Its [Amphibian Metal] owners could face charges for economic sabotage because the illegal activity could lead to an artificial shortage of coins. They could also be charged for violating central bank provisions on the import and export of Philippine currency."
The Philippines maintains its own mint for producing coinage.
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