Reserve Bank plans to withdraw 5 cent coin

9.30am

The 5 cent coin could be scrapped after the Reserve Bank today announced details of proposals to modernise New Zealand's 'silver' coloured coins.

Reserve Bank Currency Manager Brian Lang said "Our silver coins are among the largest and heaviest in the world. Due to past high inflation, our 5 cent coin is now worth less than half what a cent was worth back in 1967.

"The proposals issued today would give New Zealand a coherent and logical set of coins that would be more convenient for the public, easier for those handling coin in bulk, such as banks and security firms, and less costly to manufacture, saving annually about $2 million."

The proposals are:

* The current 50, 20 and 10 cent coins would be made smaller, and of a lighter and lower-cost plated steel

* The 5 cent coin would be taken out of circulation.

* The $1 and $2 coins will be retained, as will the existing images on the 50, 20 and 10 cent coins, including the Queen.

Mr Lang said the bank had commissioned research and consulted extensively with community groups, commercial interests, and those who handle coin in bulk.

Feedback can be provided by emailing silvercoin@rbnz.govt.nz
by 4 February 2005.

The bank emphasised that no decisions have been made. It expects to make final decisions in early 2005. If changes are to occur, they will be implemented in mid-2006.

- HERALD STAFF

Reserve Bank proposals

Reserve Bank