Poland: 1 and 2 Grosze Coins to Remain in Circulation

[Bimat]

Poland's humble grosz coins saved

19.03.2013 11:39

The lowest denominations of Poland's grosz coins will stay in circulation after plans to ditch the currency were rejected by the Ministry of Finance.

The National Bank of Poland (NBP) had drawn up plans to scrap 1 grosz and 2 grosze coins (0.002 euro/0.004 euro), arguing that production costs were disproportionate to the value of the coins themselves (it costs 5 grosze to mint a 1 grosz coin).

However, the Ministry of Finance conducted its own research, and found that retailers themselves were against the change.

"The ministry did not accept the idea of the central bank concerning the withdrawal of grosze," head of the National Bank and former prime minister Marek Belka confirmed at a press conference in Warsaw, as cited by the Gazeta Wyborcza daily.

"As a result of this, the idea has been abandoned and grosze are safe," he said.

At present, besides the one grosz coin, Poland mints two, five, ten, twenty and fifty groszy coins. There are 100 grosze to 1 zloty.

Fronted by the Polish Trade and Distribution Organisation (POHID), retailers had argued that they would no longer be able to use the popular promotional mechanism of offering products for a certain number of zloty, plus 99 grosze. (nh)

Source: The News

[chrisild]

Fronted by the Polish Trade and Distribution Organisation (POHID), retailers had argued that they would no longer be able to use the popular promotional mechanism of offering products for a certain number of zloty, plus 99 grosze. (nh)

In other words, what works fine in various other countries (ie. both threshold prices and rounding) would not work in Poland? Funny ...

Christian

[Figleaf]

Poland is an arch-conservative country, as the EU has found out. My guess is that the mint was worried about making losses. This proposal couldn't lose. If it had been approved, the losses would have been stopped. If it was rejected, the mint had covered the fatty part of its back and the responsibility had been shifted to the ministry of finance. For reasons, any blabla will do, as long as it leaves the decision easily reversible, just in case.

Peter

[ford.ka]

The latest development is that the Royal Mint won the tender and it will now produce new 1, 2 and 5 groszy coins of some cheaper alloy starting in 2014 (the same designs, however). The Polish Mint retains the production of higher denominations.