Martinelli Says Panama Will Be Poorer If It Removes Balboa Coins
Date
6/6/2024 11:27:32 PM
(MENAFN- Newsroom Panama)
Former president Ricardo Martinelli is against the removal of the one balboa coins that circulate in the country and are popularly known as“Martinellis”, since they were introduced during his mandate.
“Panama is a poor country and it will be poorer if it withdraws the one balboa coins,” he stated.
He estimates that the cost of the withdrawal will be more than $200 million, which is the amount in circulation.
He explained that in economics it is called“Fiat money”, which only costs the State the cost of production.
If they are replaced it would be with real dollars, which the country does not have.
“Whoever came up with that brilliant idea, which will cost us hundreds of millions that we don't have, I think someone should give him a basic lesson in economics,” said the former president.
The National Bank of Panama, through a statement, clarified this Wednesday that“a bill is being prepared that will be presented to the Ministry of Economy and Finance to define, provide and determine the useful life of one balboa coins, which are legal tender in Panama.”
He explained that this seeks to establish a procedure for the orderly removal of coins that are damaged or fall into disuse.
It will be up to the Executive Body, through the MEF, to analyze the proposed regulations and submit it for due discussion before the National Assembly.
Meanwhile, the representative of the Numismatic Association of Panama, Nicolás Liakópulos Falcón, said that the idea of introducing Martinellis to the market was not bad.
“Because it is made of metal, it always has a low cost and the balboa that is currently circulating costs the State $0.27, but its nominal value is one balboa”.
He added“that money is for the State and helps carry out works throughout the Republic.
Paper currency costs us $0.07 and the lifespan of a paper currency is around 18 months.
In other words, after 18 months they have to be returned and that also costs us another $0.07.
While the dollar costs us $1.14 versus $0.27 that a metal coin costs and that is profit for the country.”
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