Belgium is joining a parade of countries around the world trying to clear pennies out of our pockets, as small-denomination coins become less and less useful for purchases and more and more expensive to make.
A new law being introduced by the Finance Minister will make it mandatory for shopkeepers to round customers’ totals up or down to the nearest five cents. They’ve been allowed to do that since 2014, but few have gone ahead out of feat customers would object.
Once the new law, supported by both Flemish- and French-speaking merchants, goes into effect, there will be no use for the 1c and 2c coins; proponents expect it will make retail systems easier to operate. Because Belgium’s currency is the Euro, the coins will continue to exist. but will drop out of circulation in Belgium.
Among other countries that have canned their small-denomination coins are Canada, Hungary, Israel, Hong Kong, Denmark and Australia. The U.S. has seen repeated calls to follow suit, but none has gotten very far in Congress.
When stationed with the US Army in Europe, there were no US pennies for purchases in the military stores. Prices were rounded to the nears 5 cents as you mentioned above. I was told by a friend at the military bank that it cost more than a penny to ship a penny overseas.
I’m having none of that !
Sooner we get out of the EU the better !
” eliminating cash and checks for important payments “
Governments have been pushing that one for years.
All large transactions will go through the Banks and the Fall Guy has to pay Sales Tax.
I’m not falling for that one !!
In 2015, the penny cost 1.43 cents to make.
When we abandoned the half penny we still bought 4 sweets for a Penny.
And as the NY Times noted all those bargains at $4.99 and 99c would disappear leading to inflation.
The Penny is the mainstay of the monetary system and I know from the past nothing gets rounded down.
” If it ain’t broke – Don’t fix it !”
I’m puzzled by that Garry, since it has nothing to do with being in EU, just with choosing to abandon coins that aren’t worth enough to bother.
The UK already did that several years ago with the halfpenny coin, and with it went ha’penny sweets!
UPDATE: A French government committee has proposed moves toward eliminating cash and checks for important payments, and for eliminating one- and two-cent coins.