This was the first line of a statement issued by Deputy Governor of the Easter Caribbean Central Bank (ECCB) Trevor O.B Brathwaite.
According to the statement, the decision was taken by the Monetary Council of the ECCB in light of the high production cost of these coins compared to their intrinsic value, coupled with the large volumes required to maintain an adequate supply in circulation.
Brathwaite stated that as a result of the factors outlined, starting July 1, 2015, these denominations will no longer be issued to businesses or financial institutions.
The coins will no longer be valid either as consumers will not be able to conduct transactions using these coins. Persons can present the coins at any of the commercial banks which operate within the Eastern Caribbean Currency Union (ECCU) to receive face value.
A price-rounding system will be implemented within the ECCU countries for the settlement of cash transactions only, whereby the total payment, inclusive of duties, fees and taxes, will be rounded symmetrically to the nearest five cents. Non-cash payments using cheques, debit and credit cards will not be impacted and therefore will not be rounded.
A video conference is scheduled to be held on Wednesday, April 15 at 2 p.m. to provide stakeholder institutions with critical information relating to the withdrawal of the coins from circulation and to give an opportunity to have concerns aired and addressed.
The video conference will bring together representation from the Ministries of Finance and the Chambers of Commerce within the ECCU.