Why is the 50-øre coin being withdrawn?
The 50-øre coin is being withdrawn because it no longer circulates as an ordinary coin used for payment. While it is used in shops to give change, customers largely put the coins aside rather than use them for subsequent payments. This means that Norges Bank needs to produce a large number of 50-øre coins, even though there are a sufficient number of coins already in circulation. In recent years the annual net issue from Norges Bank has ranged between 15 and 22 million coins.
Who made the decision to withdraw the 50-øre coin?
It was Norges Bank’s Executive Board that decided that the 50-øre coin will no longer be legal tender. The decision was made on 16 March 2011 after the proposal had been circulated for comment.
How long will I be able to pay with 50-øre coins in shops?
The 50-øre coin will be legal tender and usable in the ordinary manner until 1 May 2012. If you are sitting on a lot of 50-øre coins that you do not wish to keep, you should either spend them or exchange them at your bank before this date. After 1 May 2012 Norges Bank will be obliged to redeem 50-øre coins for a further 10 years, i.e. until 1 May 2022.
How many 50-øre coins are currently in circulation?
At 30 January 2012 there were approximately 370.5 million 50-øre coins in circulation, with a monetary value of around NOK 185.25 m.
How will the withdrawal of the 50-øre coin affect the rounding rules for cash payments?
The withdrawal of the 50-øre coin means than the øre designation will no longer feature on Norwegian coins as from 1 May 2012. Amounts to be paid in cash after that date shall be rounded to the nearest whole krone.
Will prices rise as a consequence of having to round to the nearest whole krone rather than the nearest 50 øre?
No. Rounding prices in cash transactions will not in itself cause prices to rise. It is only the final total in a cash transaction that will be rounded up or down, not the price of individual goods. Electronic payments are not affected by a withdrawal of coins from circulation.