Shortage of 5, 10 and 20 euro cent coins in Belgium

[eurocoin]

It is disgraceful that the Belgian government fails to take any proper measures against this shortage. Nearly 5 months later, my Belgian bank still only supplies maximum 1 roll of 5 euro cent and 1 roll of 10 euro cent per person.

[eurocoin]

Shortage of low denominations: 'It is going to be tense during the Christmas period'

Shortages of 5, 10 and 20 euro cent coins threaten to happen during the holidays. 'Pay digitally or put your coins into circulation', say sector federations.

Although more 5, 10 and 20 euro cent coins are in circulation than ever before, they are not circulating enough. 'We have been receiving reports of shortages for a month now. There are fears of a lack of change during the Christmas period,' says Lieven Cloots of Unizo.

That is why the independent organization, together with the Febelfin banking federation and the Comeos trade federation, is calling on consumers to use digital payments as much as possible, even for small amounts. People who wish to pay cash are being asked to pay the correct amount, so that no change has to be given. They are also calling on consumers who have a lot of coins to bring them in to their bank. 'At many banks this is free for private individuals. For larger volumes there is only a small fee for counting, sorting and transport.'

Have coins become rare?

'The request should above all avoid significant shortages,' says Cloots. There are about 770 million 5 eurocent coins in circulation, 470 million of 10 cents and 600 million of 20 cents.

Every year, a part of them are lost due to carelessness or because they are being taken home by tourists. A bigger problem is that much more money has been hoarded since electronic payments experienced a major upsurge due to the corona crisis. Bancontact registered 10 percent more transactions in 2020 than in 2019. Mobile payments via smartphone happened 88 percent more.

Is cash still relevant?

Figures from the European Central Bank show that before the corona pandemic, about 60 percent of payments were made in cash. After a relapse, it is again at 50 to 55 percent.

Although more 5, 10 and 20 euro cent coins are in circulation than ever before, they are not circulating enough. 'We have been receiving reports of shortages for a month now. There are fears of a lack of change during the Christmas period,' says Lieven Cloots of Unizo. That is why the independent organization, together with the Febelfin banking federation and the Comeos trade federation, is calling on consumers to use digital payments as much as possible, even for small amounts. If people prefer to pay cash, they are being advised to pay the correct amount, so that no change has to be given. The organisation is also calling on people who have a lot of coins to bring them in to their bank. 'At many banks this is free for private individuals. For larger volumes there is only a small cost price for counting, sorting and transport.'

Why are no new coins being minted?

Due to a lack of raw materials, it is not easy to mint coins. This is especially true for the 10 and 20 cents, which consist of 90 percent copper.

The Royal Dutch Mint, which has been responsible for Belgian minting since 2018, is struggling with long delivery times because copper smelters can barely keep up with orders. 'Normally delivery times for rolls of copper are six to eight weeks, now it is six to eight months,' say experts. 'Then the rolls still have to be made into plates from which the coins are minted.' Not only have imports from Russia fallen, the demand for renewable energy and electric vehicles is also driving copper consumption. Aurubis, Europe's largest copper smelter, recently stated that it will charge its European customers a hefty premium due to strong demand, low inventories and high energy and transportation costs.

Source: De Tijd

[bart]

Due to a lack of raw materials, it is not easy to mint coins. This is especially true for the 10 and 20 cents, which consist of 90 percent copper.

Perhaps it is time to change the alloy to materials which are more or easier available.

[chrisild]

All euro and cent coins contain copper. Sure, with the reddish pieces it is only 5.6% or so while the mid-range pieces have 89%. But in the bimetallic coins there is some copper as well; ring 75%, pill less ...

Besides, any change would require an EU-wide (well, euro area wide) agreement. And the vending industry will probably want to say something about that too.

[eurocoin]

According to the Belgian newspaper Sudinfo, Belgium is now also a rapidly nearing a shortage of the 50 euro cent denomination.

At this rate Belgium will soon be cashless, as they are also having shortages of low-denomination banknotes.

For the first time in over a decade, at the end of last year my Belgian bank was unable to supply my coin order in full. They claimed they were receiving fewer deliveries. The bank also still has a nationwide policy to supply maximum 1 roll of 5 cent and 1 roll of 10 cent per order.

[eurocoin]

Belgium will exchange a significant part of its stock of 1 and 2 euro cent coins, for a total of 900.000 50 euro cent coins of Portugal. This swap between Belgium and Portugal will take place at the end of this month.

[eurocoin]

Enough coins of 10 and 20 euro cents in circulation, but shops still face a shortage: "There is more money at home than you think"

There is a serious shortage of 10 and 20 eurocent coins. Supermarket chain Colruyt, among others, therefore asks customers to pay electronically or appropriately. Yet there are enough coins in circulation, says mint master Giovanni Van de Velde. "They are hoarded by private individuals," he says.

You may have already encountered it. In some Colruyt stores there is a large message that there is a "scarcity of 20 eurocent coins on the European markets". "You can help us by paying electronically or by paying the correct amount in cash," the supermarket asks.

Bicycle repairman 't Nief Veloken from Stekene also faced the same problem. About a quarter of his customers pay cash, says owner Dieter Dhooghe. Within two weeks their supply of coins is gone. That is why he launched a call on social media for 10 and 20 euro cents, with results.

Hoarding too much
Yet there is not really a shortage, says mint master Giovanni Van de Velde. He is responsible for the quality of the coins in Belgium. With almost 4.3 billion coins, including 1 and 2 cents, there have never been so many in circulation. The problem is in the circulation, says Van de Velde. "The coins are hoarded by private individuals. As a result, the stocks, now mainly of 20 euro cents, are on the very low side. It is not always easy to provide everyone with enough coins." Van de Velde has no explanation for why there are now problems with the 20 euro cent coins.

It is not clear exactly how many coins the Belgians have at home. FPS Finance reports that it is also a problem elsewhere in Europe. For example, research by the Central Bank of the Netherlands shows that 36 percent of the population has more than 50 coins at home. "Those are the coins that people know they have at home," says Van De Velde. "We are not talking about the coins that are still somewhere in the drawer."

"Use the Coins"
Can't they just be added? There are enough raw materials, explains Van de Velde, but there are long waiting times. "The market of coin blank manufacturers has tightened since last year's crisis and the war in Ukraine. There are fewer suppliers."

At the end of May this year, Belgium placed an order for some 17 million 20 euro cent coins and 7 million 10 euro cent coins. But due to the long waiting times, they are not expected until early next year. In the meantime, the government is looking for alternatives. "We are currently negotiating possible exchange and loan agreements with other euro countries," says Van de Velde.

Consumers can also do something. "Use the coins, pay appropriately in the store or empty the piggy bank," says Van de Velde. "The coins can be brought in for free at the National Bank. You can also deposit coins at the commercial banks. In many cases that is also free. There is more money at home than you think."

[eurocoin]

I was surprised to find this article that was published a few days ago, as the spokesperson for the Belgian Finance Ministry was at the beginning of last month quoted as saying that all shortages were solved.

[chrisild]

Don't really think that is a contradiction. There are enough of these coins, it seems (also according to Van de Velde). However, people apparently hoard them instead of using them. The question is, to what extent should that be taken into account when deciding how many pieces are needed?

[Figleaf]

Someone blabbered on a "social" medium about toilet paper being hard to find. Story goes viral. People start stocking up. Classic media take up the story. Toilet paper becomes hard to find in the real world. Soothing sounds from toilet paper producers don't help. It takes an enduring oversupply of toilet paper to calm people down. Some people have yellowed toilet paper when COVID is history.

Swap coins for toilet paper, rusty for yellowed and Russian war for COVID in the above.

Peter

[chrisild]

... except that the T.P. problem was almost global (well, an issue in quite a few countries) while this seems to be a Belgian issue. 

[eurocoin]

Never before so many coins in our country, yet there is a shortage of 2 euro coins: how is that possible?

"More and more stores are complaining that they do not have enough 2 euro coins." That is what trade organization Comeos claims. National mint master Giovanni Van de Velde (34) is surprised: "There are 433 million 2 euro coins in circulation. There have never been more than now." A mystery, then. And one with an answer that may not surprise you.

Traders in our country have been struggling with a shortage of 5, 10 and 20 cent coins for at least two years, but 2 euro coins have now also been added. At least that is the concern expressed by trade organization Comeos. "The National Bank distributes coins among the commercial banks and they decide how much to deliver to customers and how much not," explains Wim van Edom, economist at Comeos. "But more and more stores are complaining that they cannot order enough coins. They sometimes only get 80 percent of their order. However, there is enough stock. To give you an example: since July last year, the stock of 20 cents has grown from 3 to 9 million. Banks are hoarding coins to allow more transactions to be made with the card," says Van Edom. Although banking federation Febelfin contradicts this. They say they want to be a 'good family man' and avoid shortages. Moreover, this explanation does not apply to the 2 euro coins, because the total supply there was 9.9 million in May and has now decreased to 3.9 million. In other words: the banks supply those coins neatly.

"There is no shortage of coins," mint master Giovanni Van de Velde immediately qualifies - he is responsible for the quality of coins in Belgium. "On the contrary. Never before have there been so many coins in circulation in our country. For 2 euros there are more than 433 million coins, for 20 cents there are more than 618 million."

In addition, all stocks have also increased monthly since the summer, the mint master continues . For example, 17.5 million new 20 cent coins have just been delivered, and in the second half of February another 7.5 million 10 euro cent coins and 7 million 5 cent coins will be added. "And from March, 2 million more pieces of the new 2 euro commemorative coin will come into circulation. This is the coin that represents the Belgian Presidency of the Council of the European Union. These quantities ordered and upcoming orders exceed the average annual needs for circulating coins. In combination with the current circulation and stock, there should not be an acute problem," said the mint master .

The question remains: where are the 2 euro pieces? If there are a record number in circulation, the stock is shrinking, but stores are short of them? The coin master : "The hoarding behavior of the consumer is the main reason. The phenomenon of smartphone covers as a new wallet contributes to the scarcity. You can store cards and notes in there, but there is no room for coins. We also hear from responses from shops that cash payments are mainly made with notes or electronically and that few payments are made with coins. The cashier has to give coins back as change and they then disappear into pockets, car, piggy banks, ... In other words: the coins we have are lying around at home. Both Comeos and the coin master therefore call on everyone to actively use coins at home again.

Quelle: Het Laatste Nieuws

[coinote]

One of the main reason is the purchasing power drops a lot in recent years, especially after the war, few years ago, one or two pcs of 2 euro coins can buy something to eat as a meal, but now what you can buy for a meal with a coin? so leave them in the drawers....

[gordarpi]

They have to put into circulation all those commemorative 2€ coins they intented to sell us at an astronomical price tag and it will consolidate the "penurie". Then I'll consider giving way to the 2 euro coins I stock and spend them in Belgaland's supermarkets to buy some lunch at those highly inflated prices.

[eurocoin]

Belgium has apparently also obtained 5 cent coins from France. This morning I received 30 French rolls of uncirculated 5 cent coins of France dated 2020 from my bank in Belgium.