The smallest denominated Danish coin, the 25-øre, will be removed from circulation on October 1, 2008. Denmark’s Minister for Economic and Business Affairs, Bendt Bendtsen, made the announcement today and was quoted as saying,
"Consumers will not notice a thing, apart from their pockets being lighter."
The coin is not only being eliminated from circulation, but after October 1, it will no longer be legal tender in Denmark. However, at least for a short time after, the coins may be cashed in at Danmarks Nationalbank.
Minister Bendtsen’s public statement for its termination include (translated from Danish to English):
Denmark has to have an effective and up-to-date monetary system, and we must acknowledge that time has outpaced the 25-øeres. It costs actually more to produce the coin, than it’s worth in fair trade. And there are considerable costs connected with the banks’ and the retail trade’s handling of the coin. It’s of course not suitable.
- Our leave of the small coin doesn’t get influence on prices or live-expenses in Denmark. Experiences from earlier abolitions of small change show that it doesn’t have influence on the price level.
In support of the points, Danmarks Nationalbank site highlighted that previous experiences in Denmark, Sweden and Norway,
"shows that taking small coins out of circulation does not lead to higher inflation."
"The reason for abolishing the 25-øre coin is that it no longer has self-supporting purchasing power. It has increasingly become “your change” rather than a useful means of payment. In addition, the 25-øre coin has become too expensive to produce in relation to the value it represents …"
The Danish 5 and 10-øre were eliminated in 1989. After October 1, 2008, the lowest legal tender denominated coin will be the 50-øre.
25-øre coin specifications
The coin was first placed into circulation January 29, 1991. Its composition is that of tin-bronze, has a diameter of 17.5 mm, thickness of 1.55 mm and weighs 2.8 grams.