According to rubaltic.ru, which refers to the news portal of the Estonian Public Broadcasting Corporation (ERR), Estonia has stopped issuing new one- and two-cent coins after the introduction of rounding rules for cash payments. A similar approach is already in place in Finland, the Netherlands, Ireland, Belgium, Italy and Slovakia.
The Bank of Estonia explained that the withdrawn coins are transferred to Latvia, where they are accepted at face value. For Estonia it is more profitable than recycling, and for Latvia it is cheaper than ordering the minting of new coins. During the year, approximately 10 million euros worth of coins have been taken out of circulation in Estonia, and the first batches have already been sent to Latvia.
Retailers have also appreciated the changes: the process of giving change has been simplified and the number of cash errors has decreased. At the same time, 1 and 2-cent coins are still legal tender, but they are not used for giving change. Stores may also refuse to accept more than 50 coins for a single purchase.
At the EU level, the complete abolition of the smallest coins has been discussed for several years, but Greece, Austria and Portugal, where large mints are located, are resisting.
The Bank of Estonia also noted that the five-cent coin may also be in question in the future, as its purchasing power is effectively reduced to zero due to inflation.
In addition, the idea of replacing 5-euro bills with coins is being considered, as paper banknotes of this denomination wear out in about a year.
