Beginning on Wednesday, October 28, the Republic of Ireland will begin using a system of rounding in retail settings. “What is rounding?” you may ask. “The Central Bank today announced Wednesday 28 October as the rollout day for Rounding in Ireland. From that day, when consumers get change in cash in shops, the amount of that change will be rounded to the nearest 5 cent to reduce the need for 1 cent and 2 cent coins” (from www.centralbank.ie website).
In the Euro currency, there are 1- and 2-cent coins (as well as 5 cents, 10 cents, 20 cents, 50 cents, and 1- and 2- Euro coins). A 1 cent coin costs 1.65c to produce, while 2 cent coin costs 1.94c. Many people in Ireland don’t even carry those coins; you’ll find them in piggy banks and jars in every home across the country. Because of this, shops have to request more 1- and 2-cent coins; thus, the Central Bank must provide them, so retailers can provide the correct change.
In order to streamline the process and eliminate the demand and expense of the smaller-denomination coins, Ireland will join Belgium, the Netherlands, Finland, Sweden, Denmark and Hungary which already use a system of rounding.
Here’s an idea of how it will work:
• 1 and 2 would be rounded down to zero;
• 3 and 4 would be rounded up to 5;
• 6 and 7 would be rounded down to 5; and
• 8 and 9 would be rounded up to 10.
If you’d like more information on the rounding scheme, we encourage you to check out the information presented on the Central Bank website at http://www.centralbank.ie/press-area/press-releases/Pages/28OctoberisRoundingDay.aspx