Withdrawal_of_low-denomination_coins

Withdrawal of low-denomination coins

Withdrawal of low-denomination coins

Removal of low-denomination coins from production or circulation


The withdrawal of a country's lowest-denomination coins from circulation (usually a one-cent coin or equivalent) may either be through a decision to remove the coins from circulation, or simply through ceasing minting.

The Swiss 1 Rappen coin, last minted in 2006

Reasons

This withdrawal may be due to the high cost of production, since the coin may be worth less than its cost of production. For example, when Canada phased out its penny in 2012, its production cost was 1.6 cents per penny.[1] Other reasons include low purchasing power and low utility. Often coins are withdrawn after their purchasing power has been eroded after decades of inflation. In Switzerland, the 1 Rappen coin had fallen into disuse by the early 1980s, but was still produced until 2006, albeit in ever decreasing quantities. Conversely, the British Treasury department initially argued for the retention of the decimal halfpenny, on the grounds that its withdrawal would drive up inflation.[2]

In some countries, such as New Zealand,[3] withdrawn coins are declared to be no longer legal tender; in other countries, such as Australia, they remain legal tender indefinitely.[4]

When the coin in question is no longer minted, cash transactions are rounded, typically through Swedish rounding.[5]

Efforts have been made to end the routine use of pennies, and equivalents thereof, in several more countries, including the United States.[6] Countries in the eurozone have had different responses to the issue; according to James Debono writing for Malta Today, "scrapping the coins is considered unthinkable for Germany where both consumers and retailers are obsessed with precise pricing."[7]

Countries

Countries that have withdrawn their lowest-denomination coins include:

More information Country, Coin(s) ...

See also


References

  1. "Canada cuts costs by eliminating penny, while US still clings to iconic coin". FoxNews.com. 4 February 2013. Retrieved 12 October 2015.
  2. "Save the penny or leave the penny?". cbc.ca. Retrieved 2015-10-12.
  3. Lewis, Mark (5 July 2002). "Ban The Penny". Forbes. Retrieved 2009-05-07.
  4. Debono, James (10 April 2014). "1c and 2c coins here to stay". Malta Today. Retrieved 20 October 2015.
  5. "Phasing out the Penny | Canada's Economic Action Plan". ActionPlan.gc.ca. Retrieved 12 October 2015.
  6. "Say Goodbye to the Smallest Danish Coin, the 25-Øre". CoinNews.net. Retrieved 21 October 2015.
  7. "Doing away with one-sen coin payment". The Star. 14 November 2007. Retrieved 20 October 2015.
  8. "Times are changing for fake ringgit coins". South China Morning Post. 8 September 2005. Archived from the original on 10 January 2019. Retrieved 2 May 2016.
  9. Bogov, Dimitar (26 April 2012). "Decision on Withdrawal from Circulation of Coins in Denomination of 50 Deni" (PDF). Skopje: National Bank of North Macedonia. Archived (PDF) from the original on 13 November 2013. Retrieved 4 August 2020.
  10. "50-øre coin withdrawn in 2012". Norges Bank. Archived from the original on 20 July 2014. Retrieved 21 October 2015.
  11. "SBP announces ceasing of coins up to 50 paisa". Business Recorder. 2 October 2013. Retrieved 27 October 2020.
  12. Stickney, Brian (2017). A Monetary History of Central America. The American Numismatic Society of New York. p. 312.
  13. "MONEDAS DE 5 CÉNTIMOS DEJARÁN DE CIRCULAR DESDE EL 1 DE ENERO DE 2019" (PDF). Central Reserve Bank of Peru (in Spanish). October 31, 2018. Archived (PDF) from the original on May 27, 2019. Retrieved October 31, 2018.
  14. Ang, Benson (25 June 2013). "1-cent coin headed for history". AsiaOne. Archived from the original on May 15, 2014. Retrieved 20 October 2015.
  15. "One Cent (1c)". South African Mint. Archived from the original on 7 March 2016. Retrieved 21 October 2015.
  16. "5c coin to be discontinued". The Times. 24 November 2011. Retrieved 21 October 2015.
  17. "Національний банк упорядковує номінальний ряд банкнот і монет гривні". Національний банк України (in Ukrainian). Archived from the original on 24 August 2019. Retrieved 24 August 2019.
  18. "Fractional Farthings". Royal Mint Museum. Retrieved 10 Dec 2021.
  19. "Reserve Bank of Vanuatu statement: 1 and 2 vatu coins" (PDF). Reserve Bank of Vanuatu. Archived from the original (PDF) on 2 November 2012. Retrieved 21 October 2015.

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