End of the road for the 5-cent coin – Central Bank discontinues minting
The Bank of Namibia this week announced that the minting of the lowest denomination, the 5 cents coin has been discontinued.
The coin, however, will remain legal tender and accepted as a medium of payment at Namibian retailers and businesses indefinitely, the central bank said in a statement.
According to the bank the decision to discontinue the minting of the coin was due to the low recycling of the coins due to increased accumulation by members of the public in their households.
BoN Deputy Director: Corporate Communications, Kazembire Zemburuka said this resulted in unnecessary pressure being exerted on the 5 cent coin denomination, given the current high withdrawal rate noted by the bank over the past few years.
Furthermore, Zemburuka said the bank noted that the handling costs for the coin have become exorbitant for commercial banks and retailers.
“Moreover, the coin has a low purchasing power, compared to other denominations in terms of the number of goods or services that a 5 cent coin can buy,” he added.
Meanwhile the bank shall continue supplying commercial banks with the 5 cents coins with the current stock that is expected to last until the end of August.