The Central Bank of Estonia reported that the cash rounding rule in force from 1 January 2025 has driven a sharp increase in one and two-cent euro coins being returned from circulation, with 5.3 million coins received in January, around ten times the usual volume. With merchants no longer needing small coins for change, the central bank is using the returned coins to supply other euro area countries where they are still needed. Under the rule, when customers pay in cash, retailers round the final basket total up or down to the nearest five cents, reducing the need to issue one and two-cent coins as change while keeping them legal tender that shoppers can still use. The central bank expects the elevated coin returns to be temporary as usage declines, and industry and consumer protection representatives reported only limited questions or complaints, pointing to retailer preparation, guidance materials and process and software updates as supporting a smooth transition.
Central Bank of Estonia 2025-02-28
Central Bank of Estonia reports tenfold rise in one and two-cent coin returns after cash rounding rule
The Central Bank of Estonia reported a significant increase in the return of one and two-cent euro coins after implementing a cash rounding rule on 1 January 2025. This rule rounds cash payments to the nearest five cents, reducing the need for small coins while keeping them legal tender. The central bank expects the elevated returns to be temporary, with minimal consumer complaints due to effective retailer preparation and guidance.