The Central Bank’s plan to have retailers round change to the nearest 5c will be rolled out from Wednesday October 28.
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The phasing out of the one and two cent coins means that the five cent coin will be Ireland’s smallest unit of exchange. The rounding will only apply to cash transactions, with electronic payments still accepted in one cent increments.
It will be entered into voluntarily by shops and follows a trial in Wexford that showed 85% of customers wanted rounding rolled out across the country.
“The reaction so far to rounding has been fantastic”, said Ronnie O’Toole of the Central Bank. Retailers were giving them to consumers; consumers were putting them in jam jars. The cost of producing a one cent coin is now 1.65 cent, while a two cent coin costs 1.94 cent.
Small copper change is on its way out in much of Europe, with Ireland the latest country to drop 1 and 2 cent coins from circulation.
“People prefer not using them to actually using them and they have these stockpiled at home”.
As of that date, all prices will be rounded to the nearest five cent. For example, anything costing €10.01 and €10.02 will be rounded down to a flat €10.00, while €10.03 and €10.04 will be brought up to €10.05.
“The Irish Central Bank will continue to ensure that there is a sufficient supply of 1 cent and 2 cent coins – they will still be legal tender”, a spokesman said.
“If the total bill is €11.21 it will round down to €11.20, if it is €11.24 it rounds up to €11.25”.
“It will balance out very quickly for the consumer and the retailer, the only difference will be that we won’t be carrying around a big pocket of brown coin”.
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Charities are taking advantage of the rollout to try and raise money for good causes.
