Due to rounding-off rules introduced at the start of 2025, the smallest euro coin denominations are, while not completely obsolete, not practical in Estonia, nor in Finland, which has also been phasing the coins out.

However, some other countries in the eurozone have not implemented rounding up rules, including Estonia's neighbor to the south.

Once the rounding-off rules came in at the start of the year, one- and two-cent coins ceased to be issued though they remained in circulation in Estonia. They have gradually been withdrawn over the course of the year, with around 10 million such coins already gone.

Rait Roosve, head of the cash and infrastructure department at the Bank of Estonia (Eesti Pank), shed more light on the developments.

"In other countries they are in everyday use, meaning there is demand for them, so in that respect things have gone well for us, as we have an agreement with our good neighbors to the south, the Latvians, with the Bank of Latvia, where price rounding has not yet been implemented. So Latvia will continue to exchange these coins, and we exchange them with the Bank of Latvia at face value, so that we receive their two-euro coins in return," he said.

Roosve called it a mutually beneficial deal, given disposing of the cents would be considerably more expensive than trading them in with the Bank of Latvia, while for Latvia it works out cheaper than ordering new one- and two-cent coins from the EU too.

Lithuania adopted rounding-off rules in May this year, meaning Latvia can potentially benefit in that direction too.

Since the start of 2025, around 10 million of the smallest denominations have been sent back, with the first shipments having already reached Latvia. To visualize how that total would look, it would fit into two large shipping containers.

Retailers, too, have welcomed the development, saying it speeds up cash register operations and reduces the incidence of cashier errors.

While one- and two-cent coins are still legal tender in Estonia and stores are required to accept them in payment, they would tend to take a dim view of customers paying for purchases with large amounts of small coins, even if rounded up.

"Over the course of a day, a handful of these cents accumulate for us, but in practice we direct customers who want to pay, who come to empty their piggy banks, to those self-service checkouts where cash payments are allowed," Kerli Reinsberg, commercial manager of the Harju consumers' cooperative noted.

According to Roosve the rules are that a retailer is obliged to accept up to 50 coins (of all denominations) in payment, and no more. Stores also do not give out one- and two-cent coins in change.

On the other hand, stores also often provide charity boxes which customers can place unwanted "shrapnel" in.

The Bank of Estonia had up until this year placed annual orders of the one- and two-cent coins. The largest of the "copper" denominations, the five-cent coin, remains in circulation, though according to Roosve, its days may be numbered too.

This would most likely happen if it were no longer practical to purchase items using that denomination, in the context of inflation.

"Even in Estonia you can find such products; there aren't very many, but they do exist. At the same time, we know that inflation is, in its own way, an inevitable, very important and significant thing. In the coming years, inflation will probably reach the point where the purchasing power of the five-cent coin essentially disappears," he added.

In the opposite direction, while the one-euro coin is staying put, discussions have been held about potentially replacing the five-euro banknote with a coin. As a more frequently used denomination and subject to wear-and-tear, the average five euro bill has a life span of around a year, he said.

Europe-wide, abandoning one- and two-cent coins has been considered for years, but so far member states Greece, Austria and Portugal have opposed it. These countries mint their own euro coins, and the mints' revenue goes into the state budget.

As well as Estonia, Finland and Lithuania, the Netherlands, Ireland, Belgium, Italy and Slovakia have abandoned one- and two-cent coins.

The rounding-off rule that entered into force on January 1, 2025 provides for rounding-off the final price of the shopping basket when paying in cash. The retailer can round the price either up or down, to the nearest 5 cents, so for instance a shopping basket of €13.22 would cost either €13.20 or €13.25 when paying in cash. When paying by card the price would remain as quoted and retailers must provide clear information on their rounding-off rules. They are also legally required to accept one- and two-cent coins, so for instance an item costing 20 cents could be paid for in small denominations, to that sum.

Coins of the smallest denominations which have accumulated in piggy banks at home can be exchanged at banks.

As noted the five-cent, 10-cent, 20-cent, 50-cent, one-euro and two-euro coins remain fully interchangeable in Estonia.

More information (in Estonian) is available from the consumer protection body, the TTJA here while information for retailers is here.

--

Follow ERR News on Facebook and X and never miss an update!