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The Planning Minister says the Central Bank's recommendation to discontinue the production of this country's five cent coin is before the Cabinet.

And he told the Senate the Central Bank gave a list of reasons for its decision including the cost of the production of each five cent coin is well above its face value.

Juhel Browne reports.
Transcript
00:00Minting a 5-cent coin costs the central bank approximately 24 cents, which is 19 cents more than its face
00:07value.
00:08On an annual basis, the bank spends approximately 0.6 million to 0.7 million to issue between 12 to
00:1614 million 5-cent coins in circulation.
00:19Planning and Economic Affairs Minister Dr. Kennedy Swarad Singh, responding to a matter on the adjournment in the Senate raised
00:25by Independent Senator Dr. Marlene Atz,
00:28who referenced an announcement by the central bank in February that while no decision has yet been made about the
00:375-cent coin,
00:38it is under consideration as a cost-saving initiative for Trinidad and Tobago.
00:43Mr. President, monetary policy does not operate in abstraction. It operates in the everyday lives of citizens.
00:51It is reflected in the price of food, the cost of transport, and the change people receive at counters.
00:57A few cents here and there may seem insignificant, but over time, these small amounts accumulate,
01:05placing a growing burden on those who can least afford it.
01:08Mr. President, in matters such as these, policy clarity is not optional. It is a necessity.
01:15Minister Swarad Singh reflected on the position of the central bank that the 5-cent coin no longer holds independent
01:22purchasing power.
01:23For small businesses in particular, particularly micro-retailers and vendors that continue to transact largely in cash,
01:31the removal of 5-cent coin is unlikely to disrupt pricing or sale activity.
01:36In practice, many retail transactions are already rounded informally,
01:41and pricing structures are typically set as multiples of higher-value denominations.
01:46For low-income consumers, the demonetization is not expected to erode purchasing power.
01:51However, Minister Swarad Singh sought to make one thing clear.
01:55Mr. President, the matter of demonetization of the 5-cent coin is currently before Cabinet.
02:00There has been no policy decision by government on the advice of the central bank,
02:06and there are no plans by this government or the central bank to demonetize any other coin.
02:12If government were to approve the central bank's recommendation,
02:17Trinidad and Tobago's future coin suite will therefore consist of 10 cents and 25-cent pieces.
02:22And the Planning and Economic Affairs Minister responded to the independent senator's call for clarity on another monetary policy matter.
02:30Mr. President, the national emblems of Trinidad and Tobago Regulation Amendment Act
02:35was recently amended to facilitate the national adoption of a new coat of arms.
02:40This requires all currency notes bearing the current design to be withdrawn from legal tender by 2031.
02:48Minister Swarad Singh told the Senate that the central bank recently advised of a rollout
02:53of a new $100 denomination note in August of this year, 2026.
03:00Jewel Brown, TV6 News.
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