On second thought…
Photo and note by Eric Jackson
It was one of those stunning — for some, at first blush – transition period announcements. The one balboa (B/.1 or $1) coins, dubbed “the martinelli” after the presidential administration during which they were introduced, would be retired from circulation.
Uncertainty, shading in some cases into panic, ensued among coin collectors, bankers, shopkeepers and ordinary citizens who hoard coins in cookie cans until the need arises to change them into the folding stuff. Who would be left holding worthless money, honestly obtained, when it’s withdrawn from circulation?
It seems that there was more counterfeiting of the martinellis than of other coins – but how much, really?
The martinellis, because of the way that they are made, break more easily than other coins – but how prevalent has that problem been?
So, still in the lame duck presidency of Nito Cortizo, came another announcement from the Banco Nacional. Broken or bent martinellis, and certainly counterfeit ones, will be taken out of circulation. However, the plan now is not to discontinue their use.
There are costs to coining new money, or to replacing coins with US currency. If the problems with the martinelli are so dire and prevalent as suggested, there would also be damage to the reputation of the Canadian Mint, which produced the things. There would be a quantifiable in monetary terms loss to that institution if the problems are widespread.
Thus a walk back on the announced policy. There will likely be further studies, by new people. Leave it to the incoming Mulino administration and the next legislature to make some decisions about Panama’s physical money supply, without any obvious incentive on the next president’s part to impugn the record in office of one Ricardo Martnelli Berrocal.
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