Estonia's Central Bank recently revealed its intention to cease the issuance of one and two euro cent coins, citing environmental benefits and minimal impact on inflation. To implement this change, the central bank is preparing new rounding rules that will facilitate the removal of these small denomination coins from circulation. The change is expected to take place during the next 1- 1/2 years.
Every year 6.7 million one-cent coins and six million two-cent coins enter circulation in Estonia. They make up over 48 percent of all coins issued by the Bank of Estonia. It has been found that these high volume, small value coins are mostly used by stores and vendors to give as change but generally do not return into circulation. At the same time, their production and handling costs as well as the environmental impact are disproportionately large compared to their role in the cash cycle. The central bank has for this reason proposed introducing rounding up, or down, as a rule so cash payments would see the final total price rounded up or down to the nearest five cents.
Five countries in the eurozone, Finland, the Netherlands, Belgium, Ireland, and Italy have already switched to rounding off one and two cent coins.
Interesting monetary facts
The central bank issued 9.2 million banknotes into circulation with a total value of €306 million during the last quarter.
The €50 banknote is the most widely used of all euro banknote denominations.
There are currently 668 ATMs in Estonia, of which 255 accept cash deposits.
There is still an estimated €43.8 million worth of Kroons out there in the community. They can still be exchanged at the Bank of Estonia for euros during business hours.
In the last quarter there were 175 Kroon for euro cash exchange transactions totalling €29,700.
The Estonian Forensic Science Institute registered 62 counterfeit euro bills, mostly the 10 and 50-euro denominations.
