SIXTEENTH CONGRESS OF THE REPUllLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.No. 239 
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) 
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Introduced by Senator ManuellLito" M. Lapid 
EXPLANATORY NOTE 
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JUL -1 P5 :nB 
The circulation of small currency values through coins allows a 
government to make economic undertakings more efficient The 
failure 
to 
circulate coins already released by the Bangko Sentrai ng Pilipinas (BSP) is felt 
more significantly in the macro setting rather than in individual circumstances. 
Thus, while individuals may claim that there is no danger in hoarding or saving 
up coins, businesses and communities will feel a loss or shortage of coins as these 
cease to actuaily circulate and are reposed instead in private savings containers. 
In recent years there has been a pattern of complaints regarding the 
availability of coins. There have even been repeated rumors of a coin shortage in 
the Philippine market In a recent statement, the BSP denied the threat of 
shortage but observed that any seeming shortage is due largely to hoarding in 
households (i.e. in piggy banks, drawers, etc.), in bank vaults, in churches, and in 
small-scale gambling activities. 
In response, the BSP launched a campaign 
encouraging citizens to use coins they keep hidden away. 
Apart from causing inefficiencies in market transactions, coin hoarding is 
problematic because it facilitates the melting and selling of coins for their 
metailic vaiue. The issue of seigniorage, the difference between the vaiue of the 
money and the cost to produce it, is key to this discussion. 
Enterprising 
individuals are aware that coins are more costly to produce than their actuai 
monetary value, particularly because of the value of the metal used in making 
coins. Thus, by selling coins for their metal vaiue, greater income is obtained 
compared to the use of the same as currency. 
The present legislation proposes to criminalize the act of coin hoarding in 
order to avoid the problems encountered thereby. The proposed bill will ensure 
the integrity of our currency and promote facility in day-to-day transactions with 
the continuous circulation of our coinage. 
MANL!-cY"r 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 239 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
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'13 
JUL -1 P5 :08, 
DEFINING THE CRIME OF COIN HOARDING AND 
PROVIDING PENALTIES THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
Section 1. Coin Hoarding. - Coin hoarding is understood to be committed 
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when: 
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(a) 
Persons or entities are in possession of coins of legal tender issued 
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by the Bangko Sentral ng Pilipinas (BSP), in an amount or in volume beyond the 
5 . requirements of their or its regular business, as may be determined by the BSP. 
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(b) 
Businesses that are required by BSP circulars on legal tender to 
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transact only with the use of coins perform transactions contrary to or in 
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violation of such circulars. 
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(c) 
Persons fail to comply with the requirement to surrender 
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accumulated coins, as provided in Section 3 hereof. 
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SEC. 2. Coin Shortage. - There is coin shortage when there is a deficiency 
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in the supply of coins in Philippine currency as demanded by the prevailing 
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condition of the monetary system. 
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SEC. 3. Allowable accumulation of coins. - Persons engaged in coin 
collecting, those who save coins in piggy banks, and other persons engaged in 
similar practices shall be allowed to accumulate coins, provided that they shall 
be required to surrender such coins within a period of one (1) month after a 
determination by the BSP that there exists a condition of, SQin shortage. 
f~i, 
SEC. 4. Penalty - Any person guilty of coin hoarding shall be penalized 
with ONE (1) YEAR IMPRISONMENT and a fine of ONE HUNDRED 


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THOUSAND PESOS (PlOO,OOO.OO) for every one thousand pieces (1,000) of coins 
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hoarded or a fraction thereof. 
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Coins confiscated or surrendered as a result of coin hoarding shall be 
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forfeited in favor of the government. 
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SEC. 5. Appropriation Clause - The amount necessary to cary out the 
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provisions of this Act shall be provided in a supplemental budget or included in 
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the General Appropriations Act of the year of its enactment into law. Thereafter, 
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the expenses for its continued implementation shall be included in the 
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subsequent General Appropriations Act. 
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SEC. 6. Repealing Clause. - All laws, presidential decrees, executive 
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orders, rules, and reulations, or parts thereof whicha re inconsistent with the 
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provisions of this Act are hereby repealed or modified accordingly. 
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SEC. 7. Separability Clause. - If any part or provision of this Act shall be 
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held unconstitutional or invalid, other provisions hereof which are not affected 
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thereby shall continue to be in full force and effect. 
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SEC. 8. Effectivity Clause. - This Act shall take effect fifteen (15) days 
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after its publication in the Official Gazette or in at least two (2) newspapers of 
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general circulation. 
Approved, 
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