Estonia to stop issuing one- and two-cent coins from next year

With the introduction of new rounding rules from next year, Estonia will stop issuing one- and two-cent coins on the grounds that they are little used and rarely

Estonia will stop issuing one- and two-cent coins from next year due to their low usage and circulation rates, ERR reports on Monday, the 16th of September.

However, existing coins will continue to be accepted in Estonia, while those collected by the Bank of Estonia will be sent to other European countries where they are still in use.

Estonia will introduce new rounding rules for cash transactions to the nearest five cents from next year, as one- and two-cent coins are rarely used for payments.

“The role and importance of one and two cent coins in the retail sector is diminishing. One and two cent coins will still be available for payment, but they will not be given back at the cash register. The practical need for them will disappear,” Rait Roosve, Head of the Cash and Payment Systems Division at the Bank of Estonia, explained.

The Bank of Estonia began collecting coins last year by installing coin machines in post offices. While more than one million euros worth of coins were collected in the first week, enthusiasm has now waned. Some consumers are now depositing only small amounts, while others reach the machine’s daily limit of three kilograms.

The collected coins will not be destroyed or recycled, but sent to other countries where there is still demand for coins of this denomination, as recycling Estonia’s one- and two-cent coins would be expensive due to their steel core and copper plating, and separating the metals would cost more than the value of the coins, Roosve added.

Estonia was previously the only euro area country to produce one-cent coins at a profit, but the overall costs of processing and moving the coins still resulted in a loss, although the financial impact was small, Roosve said.

One- and two-cent coins will continue to be accepted in Estonia when paying, but it should be noted that shops can accept up to 50 coins at a time, regardless of their value.