Bullion
Keywords
Coins-in-circulation, Payment structure, Currency-in-circulation
Abstract
The main purpose of currency in any nation is to facilitate transactions and serves as a store of value. Currency is made up of banknotes and coins. While banknotes are expected to be used for relatively large value payments, coins are for low value ones. The paper examines the factors responsible for low usage of coins in Nigeria and suggest possible remedial measures. The paper observes that there had been a general low use of coins for retail transactions in Nigeria. This was reflected in the relative value of coins in circulation as against the value of currency which was as low as 0.1 7% as at 30'n December, 2005. Coins, as part of the instruments of the payments system, are desirable for retail transactions, to avoid rounding up of prices and "forced purchase" of unrequired quantities of some consumer items.
Publication Title
CBN Bullion
Issue
4
Volume
30
Recommended Citation
Ikuseedun, A O.
(2006)
"Promoting the use of coins in Nigeria.,"
Bullion: Vol. 30:
No.
4, Article 5.
Available at:
https://dc.cbn.gov.ng/bullion/vol30/iss4/5