Spend your 1c and 2c coins, bank urges

The Central Bank has urged people to spend their 1c and 2c coins instead of hoarding them, claiming it is causing a shortage of small change in the retail economy.

The Central Bank said Ireland has issued almost 2.5 billion one cent and two cent coins, which per head of population is three times more than the average in the euro area.

However, a huge proportion of those coins end up in piggy banks and jars and are seldom spent, resulting in more small coins having to be issued.

According to the Central Bank, the small denomination coins tend to go out of circulation quickly, yet shops need to constantly refresh their supplies for change, adding an unnecessary cost to the country’s cash cycle.

Now the Central Bank has said that unless more of the coins stay in the retail system, it will be difficult to keep up with the demand. It has asked people to either spend them this Christmas, or donate them to charity.

A Central Bank spokesperson said: “Lots of people keep copper coins in jars and piggy banks around the house. There is €35.3m worth of 1c and 2c coins.

“This is better being spent or given to charity. We urge people to use this time of the year to declutter, by either giving these coins to charity or spending them.

“With Christmas approaching now might be a good time to use those stray coins by giving them to a charity of your choice.”

A Eurobarometer report from 2010 indicated that 88.8% of Irish people wanted one cent coins removed from circulation, while 72.9% said they wanted the two cent coin to be scrapped. However, both scores were still lower than those in many other eurozone countries.

The same survey found 49.2% of Irish respondents said they had a particular difficulty with one cent coins, with the corresponding figure for two cent coins at 54.3% — again, lower than in many other countries surveyed.

Last year the European Commission looked at proposals for the withdrawal of the lower denomination coins, while Wexford town was chosen by the Central Bank to host a trial to abolish the lower denomination coins.