Which countries issue circulation commemoratives?

[<k>]

So who is next to give us an overview of their country's policies regarding circulation commemoratives? How about our Indian members? 

OK, so I was wrong, we don't have any Indian members on the forum.

Over to Europe now. Calling Miner! Russia issues lots of commemorative coins, but how many are intended for circulation? And if they do circulate, which denominations are used, and how many commemorative types are typically issued for each denomination?

[Bimat]

So who is next to give us an overview of their country's policies regarding circulation commemoratives? How about our Indian members? 

In India, commemorative coins are issued for circulation in following denominations: ₹2 (steel), ₹5 (nickel brass) and ₹10 (bimetallic). All these denominations circulate, ₹10 in not frequently seen though.

Aditya

[Bimat]

In Pakistan, all commemoratives up to and including 2 rupees circulate. The first was issued in 1977 (50 paisa Jinnah).

I believe that 20 Rupees commemorative coins of Pakistan also circulate; to a less extent though.

Aditya

[chrisild]

One important criterion, I think, is what I mentioned in an earlier post: If a commemorative coin has the very same technical specifications as a "corresponding" circulation coin, that helps.   Think of Poland for example: They had those commemorative 2 złote coins for several years which could be had at face. But since the regular 2 zł pieces were different (size, composition, etc.), the former did not actually circulate. The new 5 złotych pieces are like normal fivers ...

Mintage and distribution are other decisive points. Do I have to pick a commem up at a (central or commercial) bank myself, or will retailers get them through regular channels, and then give them out to customers?

In the US, for example, the "special" quarters (SQ, ATB) circulate pretty normally. $1 coins ... not really, also because the "regular", non-commem, pieces are often frowned upon. Don't know about Russia, but in Denmark the 20 kroner "theme" coins (towers, ships ...) were issued for and used in circulation.

Christiann

[Bimat]

One important criterion, I think, is what I mentioned in an earlier post: If a commemorative coin has the very same technical specifications as a "corresponding" circulation coin, that helps.   Think of Poland for example: They had those commemorative 2 złote coins for several years which could be had at face. But since the regular 2 zł pieces were different (size, composition, etc.), they did not actually circulate. The new 5 złotych pieces are like normal fivers ...

Indian commemorative coins follow that criteria as well. All Indian commemorative (all denominations) coins have same technical specifications as regular coins...

Aditya

[<k>]

Thanks, Aditya. Which denominations are used for commemoratives and which circulate was something I didn't know. There are coins, and then there is the human side: how they are used, which is just as important.

[<k>]

If a commemorative coin has the very same technical specifications as a "corresponding" circulation coin, that helps.

Christiann

Yes, that's true, "Christiann".     That's why I am always surprised when Americans think that the Churchill crown circulated here in the UK. We did not have a circulation coin of those specifications. A half crown was our highest denomination back in the 1960s.

[Pabitra]

I believe that 20 Rupees commemorative coins of Pakistan also circulate; to a less extent though.

In Pakistan, circulation coins are currently only Rupee 1 and Rupees 2.
They are made of Aluminium since 2007.
There is a striking press in Lahore mint which strikes Copper Nickel coins.
It was used for striking 5 Rupees coins.
Last of them was struck in 2006.
Since then, they have been issuing circulating commemorative coins in Copper Nickel, of progressively higher denominations.
The denominations have been Rupees 10 and 20 with latest one being of Rupees 25.

Same sequence is true for Iran and Nepal.
Iran has gone up to 5000 Rials whereas Nepal had struck Rupees 50 in their own mint at Kathmandu.
Circulations coins of Iran are only up to 500 Rials and struck at Tehran mint.

[Pabitra]

In India, commemorative coins are issued for circulation in following denominations: ₹2 (steel), ₹5 (nickel brass) and ₹10 (bimetallic).

The last commemorative coins of Rupee 1 and Rupees 2 were RBI 75 th anniversary, struck in steel.
Last 5 Rupees in Steel commem Bhagat Singh was dated 2007 but issued 2012.
Rest Rs 5 coins for quite some time have been in Nickel Brass.

[<k>]

So these countries (Pakistan, Iran, Nepal) issue circulating commemoratives in denominations far higher than the standard circulation coins. Intriguing. That doesn't happen in the UK.

[Pabitra]

Russia issues lots of commemorative coins, but how many are intended for circulation? And if they do circulate, which denominations are used, and how many commemorative types are typically issued for each denomination?

Russia issued a large number of commemorative coins of 1, 2, 5 and 10 Roubles.
They are of same specification as general circulation coins and are available at face value.
In addition, it issues commemoratives of 10 Roubles which are bimetallic and hence not expected to circulate although their montages are very high.

In addition, it issues 25 Rouble coins which have a standard specification, as per their central bank.
These have been issued to commem Sochi Olympics with different years, which is another indication that they are expected to circulate.

[Pabitra]

So these countries (Pakistan, Iran, Nepal) issue circulating commemoratives in denominations far higher than the standard circulation coins. Intriguing. That doesn't happen in the UK.

In high inflation economy, countries tend to avoid going for progressively higher denomination circulation coins. In other words, they tend to avoid shifting of coin- note boundary to avoid conspicuous display of their failure to manage their economy. In many such countries, coins progressively disappear as their normal function of mode of exchange vanishes. Later, it requires a strong and knowledgable leader ( both traits are rarely found together in one person) to return economy on to the rails.

[Pabitra]

So these countries (Pakistan, Iran, Nepal) issue circulating commemoratives in denominations far higher than the standard circulation coins. Intriguing. That doesn't happen in the UK.

UK mint keeps on issuing coins of 5 Pounds and above.
Most of the times, they are base metal coin.
It terms them as legal tender and issues unlimited quantities at face value with the hope that they will circulate.
A 100 Pounds coin is one such recent example.
Unfortunately, the coin- note boundary is never shifted.
Only if the bank notes of those denominations are stopped, the public would accept them as circulation coins.
In the countries referred above, the currency notes of the same denomination still continue so general acceptance of higher denomination coins is rather poor. It is true for quite a almost all countries in the world. Even Euroland has countries issuing coins on 2.5, 3, 5 and 10 euros which are announced as legal tender within their own countries but ECB could not care less.

[<k>]

UK mint keeps on issuing coins of 5 Pounds and above.
Most of the times, they are base metal coin.
It terms them as legal tender and issues unlimited quantities at face value with the hope that they will circulate.

Presumably it benefits the Exchequer more if the collector coins are not spent. In any case, newspapers have reported that shops are reluctant to accept 5 pound coins, etc. I doubt that the Royal Mint has any position on this - it just wants to sell collector coins to make some extra profit. Of course, if a 5 pound coin were introduced as a standard circulation coin, then presumably the Royal Mint would welcome this, as it would mean more business. However, only the Treasury can decide to introduce new circulating denominations.

[Pabitra]

Of course, if a 5 pound coin were introduced as a standard circulation coin, then presumably the Royal Mint would welcome this, as it would mean more business. However, only the Treasury can decide to introduce new circulating denominations.

Yes, that indeed is the prerogative of the Treasury.
I have a nagging feeling that UK is undercoined. In other words, it should go in for redesign ( after redesign of 1 Pound bimetallic) for new 2 Pounds and 5 Pounds coins.
My thumb rule is that tube fare should be payable in coins alone.
In most of the Europe, metro fares are less that 2 Euros, which is the highest coin in circulation.

If I get a graduate research assistant in Economics or MBA Finance, I will get this study done this year. I want to identify countries which are undercoined, with reference to purchasing parity exchange rate as well as per Capita income. In USA, I think, the fact that quarter is the highest coin in day to day transactions, indicates that usage pattern needs to be studied.