A coin might seem insignificant if it is only worth five or ten thebe. However, once those coins have left circulation, the problem soon becomes greater than the value they carry.
The Bank of Botswana has issued a public notice that it has since noted reports of limited availability of the 5 thebe coin, particularly where businesses face challenges in providing change.
However, Bank records indicate that adequate quantities have been issued and remain within the economy. “The observed constraint is therefore attributed largely to coins being retained outside active circulation for prolonged periods, including some being discarded and left on the ground, rather than to an insufficient supply. Members of the public are encouraged to deposit excess coins with commercial banks to support redistribution and continued availability,” reads the Banks’ statement.
The Bank states that sufficient numbers of the lower-denomination coins have already entered the economy, indicating the coins have not been used up, they have just stopped circulating.
In response to increasing concerns regarding the availability of the 5-thebe and 10-thebe coins, the Bank of Botswana has said that both denominations remain legal tender and must therefore continue to be accepted in ordinary cash transactions.
The Bank states that sufficient numbers of the lower-denomination coins have already entered the economy, indicating the coins have not been used up, they have just stopped circulating.
The Bank therefore attributes the observed constraint mainly to coins being kept outside active circulation for long periods.
This is something which many Batswana will be familiar with, as a few small coins frequently end up in a drawer, a jar, a car cup holder or in a child’s piggy bank. On their own, they seem unimportant. Yet together they can cause a shortage at the till. For some people, a money box filled with coins is a simple savings habit. Those small amounts collected over months or years can eventually add up to something meaningful.
For others, there is a sentimental value, an old coin can become a small souvenir of a particular time in a person’s life.
“There is even a familiar argument that coins, much like fine wine, become more interesting with age,” one parent argued. This she said their monetary value may remain unchanged, but their personal or historical value can grow.
However, for whatever reason an ordinary Motswana may have, the central bank is currently requesting that people return the coins to circulation.
The Bank has in its statement encouraged people to use them for small payments, to accept them as change, and to deposit any extra coins with commercial banks. Businesses, meanwhile, must give the correct change.
It further stated that customers have a right to expect and to receive the correct change in each transaction.
This concern has come at a time when the expenses involved in producing money are also a major point on the nation’s agenda, Parliament has recently raised concerns regarding the costs the government suffers when printing notes and minting coins.
The Bank has already stated that the currency system used in Botswana has developed in response to changes in prices, with coins becoming more widely used for smaller transactions.
