Soon to be replaced with a gold-colored coin, the $2 tala note will be taken out of circulation later this year.

By Renate Rivers

As per a recent communiqué from the Central Bank of Samoa, Samoa is set for some changes to the national currency.

A review last year of the existing coinage system revealed that minting the current set of coins had become expensive due to the increasing value of metal over time.

The most drastic of changes will be the eventual demonetization of the 1, 2 and 5 sene coins.  

Soon to be obsolete - 1, 2 and 5 sene coins

Also on the cards is a revamp of the remaining coinage – 10, 20 and 50 sene coins – which will include a reduction in size and change in metal composition.  The notes will remain unchanged, except for the $2 tala polymer note which is to be replaced by a gold coloured coin. 

Manager of Banking and Corporate Services, Malaeoalii Sootala Pua confirmed that these changes will become effective before the end of the year and that the move to take the lower valued coins out of circulation was overdue for several reasons.

“Not only is it expensive to mint the old coins, but the demand for them has diminished over the years.  In general, the retail sector has moved away from pricing their goods at this base level of one, two and five sene.�? 

He added that global minting costs have been rising steadily, and within Oceania there has been strong interest to change currency in order to reduce production expenses.

He went on to say that the Central Bank held consultations with other countries that had been through the same process, and their experiences were useful points of reference for Samoa’s own review.

“A few years back, New Zealand made the same move and eliminated their 5 cent coin.  They had previously changed over from 1 and 2 dollar notes to 1 and 2 dollar coins, so that’s an example of another nation recognising the changing times.�?

The minting of new coins and printing of new paper currency is undertaken on an ‘as needed’ basis, according to the head of CBS Banking, with demand for currency dictating when they mint/print.  He indicated that this usually meant a new currency batch every 5 years.

The obverse of the current coins show the profile of the late Head of State Malietoa Tanumafili II, and CBS plans for the present Head of State Tui Atua Tupua Tamasese Efi’s effigy to appear on the new coins.  Now that the office for Samoa’s Head of State is no longer held for life, it is expected that with each new Head of State, coins will have to be minted to reflect the change in office.

Coins set to be resized

The demonetized coins, once collected, will be melted down and sold.  According to Malaeolaii, this can be very lucrative due to the metal composition.  The 1 and 2 sene coins are bronze; the $1 tala coin is struck in aluminium-bronze and the rest copper-nickel.  The $2 tala polymer notes will be shredded and reduced to powder.

The new coins will be minted at The Royal Australian Mint.

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Renate Rivers

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