Out for the US Penny
Are cent coins also abolished with us?
After around 230 years, the United States hires the production of the Penny. In this country, too, there are efforts to abolish small coins. Some speaks for it, but there are also arguments for the cent.
In Germany, there is still a discussion that the United States creates facts: in the United States the production of the one-cent coin is set. As of the beginning of next year, no new Penny coins will be used in circulation, as several US media report citing the Ministry of Finance and coin producers. The last penny production was ordered.
How is the situation in Germany?
There is already a proposal that would make one and two-cent coins unnecessary in this country: In March, the “National Care Forum” initiated by the Bundesbank suggested rounding up or rounding off the next five euro cents. For 4.99 euros, 5 euros would then be paid, on the other hand, only 1 euro would have to be paid for amounts of 1.02 euros. This would also accelerate the cash payment at the cash register because not to rush after cents in the wallet.
Why is the smallest US coin no longer produced?
The reason: the high production costs that exceed the 1 cent value of the coins. U.S. media, citing a forecast of the coin producer of $ 56 million (just under 50 million euros), which can be saved annually by the end of the Penny.
Bundesbank board member Burkhard Balz argues with a view to the euro area: “Overall, the economic and ecological costs for production, packaging and transporting the one and two cent coins are high in relation to their nominal value.” In addition: a large part of the copper coins end up in piggy bank or is lost – and thus disappears from the cash cycle. How the new federal government is the proposal of the cash forum is not yet publicly known.
What do consumers say?
Despite all the digital possibilities, cash is number one in Germany. But if the wallet threatens to burst hard money, many want an end to the smallest copper coins. “Finding the last cent out of the wallet at the supermarket fund is not a pleasure for many,” said consumer advocate Dorothea Mohn in March.
According to surveys, small coins are not very popular: in the latest Eurobarometer, which is commissioned annually by the European Commission in all EU countries, the majority of respondents spoke in favor of abolishing one and two cent coins. Of the approximately 18,600 respondents from the euro countries, 61 percent approved the abolition of the small coins, with respondents from Germany it was 53 percent.
Why are there still small coins?
For retail, crooked amounts in the competition for customers are an important instrument for price differentiation. Many dealers don’t want to do without the possibility instead of 5 euros, for example, to request 4.98 euros. Because when shopping, customers look primarily at the number before the decimal point – and then were more favorable than they actually are.
What else speaks for the little coins?
If you regularly make your wallet regularly and collect the small coins, after a while, you will have a male sums – money that was basically written down. The copper coins also often end up in donation boxes.
Some cash lovers also remain loyal to the climatic money because he fears that the abolition of one and two cent coins could be the beginning of the end of the cash. However, even in Eurolands, this is not the case in which there are already rounding rules, such as in Finland. Because the abolition of the small euro coins could only be decided at European level.
dpa
Source: Stern
