BoN discontinues production of five cent coin

25 Apr 2019 16:10pm
WINDHOEK, 25 APR (NAMPA) - The Bank of Namibia has discontinued the minting of the five cent coin, although it will remain legal tender.
The bank’s Deputy Director for Corporate Communications, Kazembire Zemburuka said in a media statement on Wednesday the minting of the denomination has been discontinued as from 01 January 2019.
The coin will however remain legal tender in Namibia and will be accepted as medium of payment by local retailers and businesses indefinitely.
“The decision to discontinue the minting of the five cent coin was informed by the low recycling of the coins due to increased accumulation by members of the public in their households,” he said.
The handling costs for the five cent coin have also become exorbitant for commercial banks and retailers.
Zemburuka said the coin has low purchasing power, compared to other denominations in terms of the amount of goods or services that it can buy.
If five cent coins are not readily available, retailers and businesses are expected to apply the rounding principles of adjusting the final cash payment to the nearest cent in favour of the customer.
“The bank shall continue supplying commercial banks with the five cent coin with the current stock that is expected to last until the end of August 2019,” Zemburuka said.
(NAMPA)
ANS/EK/AS