Pacific Magazine > Daily News

Minting Fiji Coins Cost More Than Face Value

By Ricardo Morris in Suva
Wednesday: October 08, 2008

Fiji’s central bank will stop issuing its smallest denomination coins from Monday because the cost of producing one coin has risen higher than its face value.

The Reserve Bank of Fiji will begin withdrawing 1-cent and 2-cents coins from October 13, in line with a new coinage structure approved by the interim Cabinet.

In a newspaper and television awareness campaign, the RBF said it costs the bank 4-cents to produce a single 1 cent and 2 cent coin, and that this was unsustainable for the country.

Total purchases will now be rounded off to the nearest 5c, although the marked prices of individual items should not change, the RBF said.

The bank will also introduce small and lighter 5, 10, 20 and 50 cents and $1 coins with a new metal composition and edge designs to replace the current circulation coins.

The Reserve Bank’s Deputy Governor Sada Reddy said in a statement last month the changes were necessary to save costs because of the rising rates of metals.

“Implementation of these changes will save the country millions of dollars,” Reddy said.

The new, smaller and lighter coins, minted by Royal Canadian Mint, will be issue from January.