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Costa Rica: coinage structure analysis and the future

Started by <k>, February 11, 2024, 09:16:58 PM

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<k>



Costa Rica: circulation coinage circa 2007.


Above you see Costa Rica's regular circulation coinage circa 2007.

It has remained essentially unchanged since then.


The colón is the currency of Costa Rica.

It was named after Christopher Columbus.

He is known as Cristóbal Colón in Spanish.


A colón is divided into one hundred céntimos.

However, no céntimos coins have circulated for many years.

There are now only colón denominations in circulation.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

<k>

VALUE OF THE COSTA RICAN COLON

Currently a US dollar is worth around 516 colones.

The lowest value Costa Rican circulation coin is currently 5 colones.

The highest value circulation coin is currently 500 colones.


When coins of 500 units are issued, redenomination is usually not far away.

Usually, but not always. Inflation in Costa Rica is currently very low.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

<k>

CURRENT STRUCTURE OF THE COINAGE

Coin tiers.

The Costa Rican coinage consists of two tiers.

All the coins are round, but the set includes only two different colours.

The 5 and 10 colones are "white" and made of aluminium.

However, a stainless steel 10 colones coin was issued in 2021 only.


The 25, 50, 100 and 500 colones coins are made of brass-plated steel.

So the coinage includes only two basic colours: "white" and yellow.


Coin design.

The design of the coins has always been very plain.

The obverse always show the coat of arms.


The reverse design is very plain and similar in each case.

It has changed in prior years, but only from one type of plain to another.


Coin sizes.

The coin sizes are medium to very large, by current standards.

The white 5 and 10 colones coins are medium-sized.

They have respective diameters of 21.4 mm and 23.5 mm.


The yellow 25, 50, 100 and 500 colones coins are all larger than that.

Their respective diameters are 25.5 mm, 27.5 mm, 29.5 mm and 33 mm.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

<k>

ANALYSIS

Characteristics of a coin tier.

A coin has physical characteristics that allow it to be recognised.

The three most important ones are size, shape and colour.


Typically, some coins in a series have the same shape and colour.

However, the sizes of these coins must be different.

This allows them to be easily distinguished.


Coins of the same shape and colour are said to belong to a tier or family.

Typically, the larger coins of a tier are higher in value than the smaller ones.


Creation of new coin tiers.

Coins in a series are usually split into separate tiers.

If there is only one tier and several coins, the largest coin would be quite large and heavy.


Typically, a new tier is then created for the higher denominations.

Coins of a higher value can then be made smaller.

They must however be given a different colour and / or shape.

Then they are easily distinguishable from the lower value coins.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

<k>

THE COSTA RICAN CASE

Costa Rica has two easily distinguishable coin tiers.

They are: 1] round and "white"; and 2] round and yellow.


However, all the coins of the yellow tier are large.

They are all larger than those of the white tier.

One of the advantages of the second tier has been lost.


The yellow coins should have been made smaller.

Their colour would have distinguished them from the "white" coins.


Instead, the standard 500 colones coin is unusually large.

It is the highest denomination coin in circulation.

It is 33 mm in diameter and weighs 11 grams.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

<k>

THE PROBLEM OF THE 500 COLONES COIN

The regular Costa Rican 500 colones coin is too large and heavy.

It is 33 mm in diameter and weighs 11 grams.


It is many years since such large coins circulated in most countries.

In the second half of the 20th century, metal prices rose significantly.

This meant that, firstly, coins were made smaller and lighter in response.

Secondly, many coins began to be minted in less expensive metals and alloys.


Costa Rica has followed the second of these two options.

Its coins are now minted in cost-effective alloys.

However, it has not reduced the size of its coins.


Large coins are costly and inconvenient.

They are inconvenient for the public.

This is especially the case as inflation increases over the years.


They are also inconvenient for banks and businesses.

Heavy coins take up more space.

Transportation and delivery of the coins cost more.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

<k>

THE SOLUTION TO THE PROBLEM

Costa Rica has found a partial solution to the problem.

The regular 500 colones coin has not been minted since 2015.


However, commemorative 500 colones coins now circulate.

These circulating commemoratives have been minted since 2021.

One was issued in 2021 and two in 2023.


These circulating commemoratives are still quite heavy.

They weigh 10.5 grams, only a half gram less than the regular coin.

However, at 28 mm they are 5 mm smaller in diameter.


The circulating commemoratives are also bimetallic.

Bimetallic coins are intrinsically attractive.

They also have attractive pictorial designs.

They are altogether more pleasing than the standard coins.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

<k>

Costa Rica 500 colones 2023.jpg

Costa Rica.   500 colones coins of 2023.



Costa Rica 500 colones 2021.jpg


Costa Rica.   500 colones coins of 2021.


Here are the circulating commemoratives issued to date.

They are far more attractive than the regular versions.


The 2021 coin commemorates the Bicentenary of Independence.


The 2023 coins commemorate:

1] 175 Years of the First Costa Rican Republic.

2] 75th Anniversary of the Abolition of the Costa Rican Army.

Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

<k>

THE LIKELY EFFECTS OF THE CIRCULATING COMMEMORATIVES

Costa Rica's coinage has had plain mono-designs for years.

Now the circulating commemoratives have burst onto the scene.

They have brought extra colour and interest for the general public.


This change cannot be put back into the box.

It is a small revolution of sorts.

And it will eventually have consequences for the regular coinage.


I see three effects now in play.

Firstly, the public will become used to attractive thematic coin designs.

Citizens will not mind if their conservative regular coinage is changed.


Secondly, I expect that the currency will be redenominated by 2030.

The prospect of a new coinage prompts new ideas.

By then, the public may welcome thematic designs for the regular coinage.


Thirdly, many neighbouring countries already have thematic coin series.

Worldwide, more countries are choosing to issue thematic coin series.

The UK has chosen to ditch its conservative heraldic designs.

It has now adopted wildlife designs instead.

Even Saudi Arabia now issues coins with attractive pictorial designs.


Eventually Costa Rica too will be influenced by these trends.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.