On Monday 3 February, the Hiroshima based coin-manufacturing department of Japan’s Finance Ministry resumed the production of aluminium ¥1 coins for the first time in four years. This is thought to be in preparation for the consumption tax increase which will occur on April 1, 2014.
A shortage of ¥1 coins is expected amongst retailers and other cash handlers due to the anticipated increase in use after the tax rises to 8% from the current 5%, according to Japan Mint officials.
The Finance Ministry is scheduled to issue around 25.5 million new ¥1 coins produced by the Saeki Ward, Hiroshima branch of the Japan Mint, by the end of March 2014. Production plans are to produce 160 million ¥1 coins annually from April 2014.
The Mint had stopped manufacturing the ¥1 coins in 2010 due to a decline in their demand, reportedly due to Japan’s increasing use of electronic payments.
Source: The Japan News
