The following link is not what this post is about: http://www.amazon.com/U-S-Money-Bubble-Gum-Coins/dp/B002HEK1QU But, an odd (by free world standards) happening is occurring in Saudi Arabia. Dateline: JEDDAH: There is a widespread practice in the Kingdom not to accept small denomination coins as currency. Most shoppers in general prefer to exchange the half-riyal for chewing gum or any other item of the same price. Some people hate to carry coins considering them an unnecessary nuisance. In fact, some shops no longer keep small denomination coins and allow buyers to either take packs of gum, packets of tissues or any other small item of the same value. A pack of gum is the most common substitute for a half-riyal coin. Coins have gradually lost value throughout Saudi Arabia. A reporter employed by Arab News visited more than 15 shopping centers and found that all cashiers keep chewing gum in lieu of small denomination coins for change. Muhammad Salem, a Yemeni cashier in a grocery shop in Al-Salamah district, says he rarely sees people wanting their half-riyal back and routinely ask for gum instead of coins. "When I tell them that the price is something like SR14.50 (Saudi Riyal), they immediately grab a pack of gum," said Muhammad Salem. Muhammad Gul, a cashier at a shopping center, said he has lost customers because of the 50-halala change. "Saudis in general and many other people do not like to carry coins. I have suffered a lot because of this. When I return 40 halalas back as part of their change they throw it at me and ask me what they are going to do with it. I even had a customer who returned a product that cost SR2000.50 simply because I insisted he take his 50 halalas back. To save time and since people do not like coins we round up the price. Instead of charging SR4.50 we charge SR5," he said. Here's the Saudi Arabia denmominational breakdown: 5 Halala = 1 Girsh; 100 Halala = 1 Riyal (50 Hala = 1/2 Riyal) Before we dealve further into Gum Money take a look at some of Saudi Arabia's minor coinage (photos courtesy of Don's World Coin Gallery): This 5 Hala (1 Girsh) is a 19.5mm C-N (copper-nickle) coin: http://worldcoingallery.com/countries/coine_cs.php?image=nmc6/154-61&desc=Saudi%20Arabia%20km61%205%20Halala%20(1987)&src=Zdravko%20Bosnjak&query=Saudi%20Arabia%20km%2061 This 10 Halala (2 Girsh) is a 21mm C-N coin: http://worldcoingallery.com/countri...m62 10 Halala (AH1408) 1987&query=Saudi km 62 This coin is a 25 Halala (1/4 Riyal) 23mm C-N coin: http://worldcoingallery.com/countri...m63 25 Halala (AH1408) 1987&query=Saudi km 63 This 50 Halala (1/2 Riyal) is a 26mm C-N coin: http://worldcoingallery.com/countri...m64 50 Halala (AH1408) 1987&query=Saudi km 64 Let's return to our newsworthy "trivia" post. Muhammad Gul continues, "In Saudi Arabia people don’t value coins very much. Frankly speaking nobody takes coins seriously. Not even supermarkets. But if you go to Europe or America you see the difference. Coins are very valuable there. Every penny counts," he said. Ismail Muhammad, a British expatriate in Jeddah tells us, "Pennies make pounds, well that’s what we say in the UK. It’s funny how people don’t value even little bits of money. In England people wait for their one pence change. There was a time expatriates used to collect the 50 halalas. People used them at phone kiosks in downtown Jeddah to ring (call) home," he added. The role of money in modern economies has obviously changed over the years. With improvements in technology and for security purposes the use of coins and notes has dec;ined. Other forms of payment are used today such as checks, credit cards or debit cards. This brings into question the use of coins and notes. John Sfakianakis, chief economist at SABB (Saudi British Bank), says: "There is an argument supporting the usage of coins as it could be a preventive measure of rounding up prices. However, the proper usage of coins in support of consumers has to be kept in mind. Certainly, the usage of very small coin denominations [which] have been decommissioned could follow the fates of the One and Two Cent coins of Australia and New Zealand who removed them in the early 1990s." Sfakianakis adds, "In the case of Finland and the Netherlands, who use the euro, they don’t use the two lowest value coins. The fear that businesses would round up their prices which would lead to general inflation is an issue that should involve policymakers and consumers alike. The use or the disuse of coins should consider the benefits the consumer should ultimately reap." According to the latest Saudi Arabian Monetary Agency (SAMA) statistics, coins issued by SAMA have increased slowly from 2002 to 2007. In 2002, coins worth SR 201 million were in circulation and SR13 million were in banking department. In 2003, SR 206 million, in 2004, SR 211 million and in 2007, SR 224 million coins were in circulation. In 2008, the number of coins issued has increased steadily from SR 225 million in January to SR 231 million by the end of October. However, coins in the banking department decreased to SR 8 million in 2007 from SR 13 million in 2002. In 2008 also, coins in the banks declined to SR 7 million in October from SR 8 million from January. So if you plan to tour Saudi Arabia in the near future be sure to take along some 5-paks of chewing gum. Another note: Spend all your Arabian coins as it is illegal to take them out of the country... Thought you should be apprised of all the numismatic news whereever it is happening...:secret: Clinker
Because all their money comes from crude oil it would be funnnny to go to a novelty shop here in the U. S. before you go & buy some of that black gum that turns your mouth black & pass out several packs of that to them , lol-lol-lol-lol , just a thought
Interesting. I still say they should eliminate the cent here in the US, especially now that we are getting those abysmal designs next year.
physics-fan3 Trying to keeps one's currency hegemony in the world, countries must make sure hope of a better future permeates through the populace including their lower class citizens. This can only be accomplished if the lower class can save money. The small denominations allow the lower class a way to save. It may seem a menial thing to the middle class members, but it is important. The Euro is a currency designed to take away America's hegemony. Chavez of Argentina is trying to get the Central American, South American and Caribbean Island countries to create another currency whose sole purpose is to discredit our dollar. Right now all important world commodities (i.e., oil) are based on the United States Dollar, but all our enemies want to change that. Eliminating minor coinage and debasing coinage gives fuel to our enemies' fire. Clinker
I don't know about you, but around here (near Erie PA), the stores are already discounting 2-3 cents off items, if I buy something they are rounding down to avoid my having to come up with a couple of cents, this will lead to the demise of the cent, along with it's almost worthlessness.
randygeki: The retailers weren't forcing anyone to accept gum in lieu of Halala or 1/2 Riyal change: The middle class buyers refused the Halalas, Girsh and 1/2 Riyals because of their low (almost no) value and opted for a product at or near the change's value ( i.e., small packs of tissue, candy, or as the majority chose, gum). Hi and thanks for reading, commenting and the nomination...:high5: Clinker
