National Rounding Scheme to reduce small coin costs
On the 17 June, the Government formally approved a national voluntary rounding scheme, with the total amount of all cash transactions being rounded up or down to the nearest 5c. The Central Bank has confirmed that a voluntary scheme of this nature will require no change in legislation and the legal tender status of both 1c and 2c coins will remain unchanged. Rounding will be conducted on a voluntary basis for both consumers and retailers alike. The Central Bank will ensure that an adequate supply of 1c and 2c coins remains available to facilitate demand, although the level of demand is expected to fall sharply, resulting in significant cost and efficiency savings for all stakeholders in the payments arena. It is important to note that rounding will only apply to cash transactions. The initiative is not designed to have any impact on shelf prices or individual product prices and will not apply to electronic transactions, including payment cards.
A tentative introduction date has been set for late October. For further information on this please click here.