The Debate on Coin Rounding

As those involved in the industry continuously review the cost of coins, not just production but also distribution and circulation costs, so do government bodies to ensure that the currency systems in place are best suited to the areas in which they operate.

Minting costs, especially those higher than coin face values, are inevitably absorbed by whichever treasury or central bank purchases the coins. Cost efficiency is, unsurprisingly, particularly important in the case of public money. In addition, the purchasing power of many lower denomination coins has diminished over time, leading to a fall in their use and less of these coins continuously circulating.

These factors all considered, it is somewhat unsurprising that several governments have issued, or are in the process of conducting, consultations around the matter. Between 2016 and 2022, 19 countries discontinued issuing one or more of their lowest denomination coins, often following consultation. They include the Bahamas, Barbados, Jamaica, Mexico, Namibia and Ukraine, along with several eurozone countries (Belgium, Ireland, Italy, and Slovakia).