I HAVE found coins with higher denominations being increasingly exchanged outside the Kingdom as people use them to pay public transport charges, purchase different goods at supermarkets and pay for car parking as well as for many other daily transactions. But we don't see regular use of riyal coins inside the Kingdom for transactions as if our coins have no exchange value. I think there are two reasons for this situation. Firstly, high inflation rate has reduced riyal's value. Secondly, our coins are available only in small denominations. SR1 is the highest value of coins in the Kingdom. The remaining coins have lesser value — half riyal, quarter of a riyal and 10 halalas. Should we use coins for most transactions or avoid its use considering coins as a burden? Saudi Arabian Monetary Agency (SAMA) has a big role to play in encouraging the public to use coins for various transactions. It should increase the value of coins by minting coins of higher denominations. Coins would be long lasting than paper currency. SAMA has to revise its policy of minting coins of various denominations to encourage people to use them regularly for various transactions. I would like to propose minting of coins for SR2 and SR5 so that people would be able to use them for various purposes. We know that many products can be purchased for SR2 or SR5 including foodstuffs and soft drinks. I also would like to suggest that SAMA print paper currency for SR1,000 denomination while keeping the existing paper notes. I believe that coin-based transactions will be the basis of monetary exchange today and in future. Unfortunately authorities have not given due importance for transactions using coins. The existing riyal coins will not be useful for the public as they will not help them purchase required things. Considering the significance of coin-based transactions I propose SAMA mint coins of higher value so that people can use them to purchase various goods and services, if the agency really wants to promote coins. On the other hand, if SAMA puts greater focus on paper currency, giving coins lesser importance, it would not bring about any major change in transactions. Minting coins is more expensive than printing currency notes. But this should not prevent SAMA from minting higher denomination coins. I hope SAMA would take an appropriate decision to expand coin transaction in the country.
