MAS reviewing legal tender limits for coins

We thank Ms Estella Young for her feedback on the legal tender limits for coins in Singapore ("Why no cap for $1 coins?"; Wednesday).

The currency issuing authorities generally set legal tender limits on smaller denominations of currency to minimise inconvenience and cost in handling large quantities of low-denomination currency.

Legal tender limits on coins have been adopted in a number of countries, including Britain, Australia, Canada and Japan. For example, in Britain, smaller denominations below 50 pence are legal tender up to £10, while higher denominations of £1 and above are legal tender for any amount.

In Singapore, when the Currency Act was enacted in 1967, there was a legal tender limit for the $1 coin, up to an amount not exceeding $10. There was no limit for the $1 note, which had coexisted with the $1 coin. However, the legal tender limit for the $1 coin was removed in 1982.

The Monetary Authority of Singapore is currently reviewing the legal tender limits for the various denominations of coins, including the $1 coin, and will keep the public informed of the outcome.

Bey Mui Leng (Ms)

Director (Corporate Communications)

Monetary Authority of Singapore

This article was first published on November 15, 2014.
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