Hoarding of coins leads to liquidity crisis in Trang
Some people in Trang province are hoarding 5-baht and 10-baht coins, betting on an increase in their value in the future, leading to a shortage in those currency denominations.
“Vendors in Trang province have of late been facing a shortage of 5-baht and 10-baht coins,” a vendor who sells fresh vegetables in the downtown market told The Nation on Wednesday.
Even bank branches are not able to provide coin change to vendors, she complained.
Money hoarders are speculating that the current 5-baht and 10-baht coins will not be printed again in the post-King Rama IX era, so they are hoarding them and they expect to reap financial gains from an appreciation in their value in the future.
Meanwhile, Chakkrit Parapantrakul, director-general of the Treasury Department, admitted that circulation of 5-baht coins was not as liquid as in the past. But it is not a serious problem, he said, and added that officials will transport coins to where ever there is a shortage of supply.
Currently, 10-baht, 5-baht, 2-baht, 1-baht, 50-satang and 25-satang coins worth about Bt57 billion are in circulation , said Chakkrit. A new batch of coins are expected to be circulated soon this month, he said.
He also added that newly designed coins are expected in the market later.