Egyptians have a problem with small change. A couple of years ago, if someone in a store was owed change of LE0.25 or below, the cashier would either overlook it or offer a sweet, match box or even painkillers in exchange. Since metal coins have been introduced replacing paper notes of LE1 and below, this has become the case even with the LE1 and LE0.50 denominations, the most frequently exchanged denominations. Coins, despite having been around for two years, are still disliked by the majority of Egyptians. They are "heavy," and they "jingle as you walk," are often the complaints heard. And many Egyptians feel that the change from paper to metal appearance has meant the demise of the pound and that it is on its way to becoming extinct. But the mint authority, affiliated to the ministry of finance and behind the metal coinage, believes otherwise. For the last couple of weeks it has been running an awareness campaign telling people "a coin is worth its value not what it is made of." One of the campaign's adverts features a woman being offered LE1 change in one hand and a cheaply packaged painkiller in the other with a voice over asking "do you want change or do you want to open a pharmacy?" Why run a campaign two years after the coins have already been in circulation? Ahmed Sherif Sadek, head of the authority, says the coins have not yet reached all citizens and it is important that they are made aware of their denominations and what they look like. In those two years he says LE650 million worth of LE1 coins and LE358 million of half pound (50 piasters) have been introduced in to the market. He pointed out that the minister of finance has said that there is no intention, at the moment, to issue coins of higher denominations. All paper notes of LE1and below will be replaced by coins by the end of 2012. The main reason why metal has replaced paper in these small denominations was the short life span of the paper notes which he put at ten months. In comparison, the coins can remain in circulation for up to 15 years. “So although the paper notes are cheaper to issue,” Sadek says, “considering how fast they wear out and need to be replaced, then the coins are more cost effective." Moreover, he says, the paper printing machines are more costly than the metal minting machines. And, finally, there is the issue of image. "We must not forget the worn-out look of the paper notes in the hands of tourists," Sadek adds.
