There could be more Manx coins in circulation - at least for the near future.

While Tynwald approved the possibility of more coins being issued, members also heard that further down the line that 1p, 2p and 5p coins may fall out of use.

Under current rules, Treasury can issue £110 million of Manx currency, divided between £90 million in notes and £20 million in coins.

But Treasury Minister Alfred Cannan was last week given approval to change the limit to £115 million, with the amount of coins allowed to go up to £25 million. All currency issued by Treasury is backed by reserves on a pound for pound basis.

He told members that while the £90 million limit on notes was easily sufficient, the face value of coins in use had almost reached the limit - peaking at £19.3 million in September last year.

He warned that limit would become inadequate later in the financial year, so an increase was needed.

’In practice the amount of currency in issue is driven by demand,’ he said.

’Over the past few years Treasury, in conjunction with the Isle of Man Bank and Isle of Man Post Office, has taken steps to encourage use of Manx notes and coins.’

This has included promoting the use of Manx £5 notes in cash machines and ’three repatriations’ of UK coins in the last 15 months.

The removal of the UK round pound coin saw more Manx round pound coins minted and circulated to allow a ’smooth transition’ without disrupting retailers or consumers.

’Manx coins now have a greater presence in the coins in circulation, which will assist the Manx economy,’ said Mr Cannan.

He added that it was ’by no means certain’ that Treasury would issue notes and coins up to the limits, but it was appropriate to revise those limits.

Dr Alex Allinson (Ramsey) suggested the time may have come to think about getting rid of coppers - 1p and 2p coins - because of the increasing cost to mint them compared with their worth.

Bill Henderson MLC, the Treasury department member in charge of financing coins, said that issue was being looked into seriously.

Moves elsewhere towards a cashless society were also being monitored and the Isle of Man would get to that point some time in the future ’without a shadow of a doubt’, Mr Henderson added.