Ireland to scrap one and two cent euro coins

Ireland is set to drop one and two cent euro coins from circulation, in a move that will see cash transactions rounded up or down to the nearest five cents.

Following a successful trial in Wexford in 2013, which showed that 85% of consumers and 100% of retailers were in favour of a rounding system, the new scheme will roll across the island as from 28 October.

It will join Sweden, Belgium, Finland, the Netherlands, and Denmark in ditching the small copper change.

The Central Bank of Ireland said that one-cent coins cost more to mint than their equivalent face value; a one cent coin costs 1.65c to produce, while a two cent coin costs 1.94c.

“As a country we are good at making changes like this,” Ronnie O’Toole from the Central Bank said. “We migrated to the euro ahead of most other countries, and the indications so far are that consumers and retailers alike will embrace rounding.”

The coins will remain legal tender, and retailers will still be able to price goods at prices such as €1.99. However, they will only be obliged to hand out cash change to the nearest five cents. The rounding will only apply to cash transactions, with electronic payments still accepting one-cent increments.

However, Irish charities are concerned that the withdrawal of small coins from circulation will have a negative impact on donations. Ireland’s Change for Charity group has warned that scrapping the coins could lead to the charity sector missing out on millions in revenue.