Could the smallest coin be withdrawn and a new forint banknote arrive? The MNB answers
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Despite recent inflation, there are no plans to phase out the 5 forint coin from circulation. Notably, the Magyar Nemzeti Bank has not provided any indication regarding the introduction of a higher denomination than the current one.
Addressing the issue, the Magyar Nemzeti Bank (MNB) responded to a query from vg.hu, stating, “As the HUF 5 coins actively participate in cash circulation and show no signs of diminishing in usage, unlike the previous scenario with the withdrawal of HUF 1 and 2 coins, there is currently no intention to withdraw the HUF 5 coins.”
With a current circulation of 825 million 5 forint coins, reclaiming half of them would entail handling more than 1,700 tonnes of coins, incurring significant costs for the MNB. Additionally, these coins demonstrate robust durability and do not need to be scrapped.
Crafted from brass, the five-forint coin has seen an escalation in its production cost. Presently priced at 6 to 8 forints, it is gradually losing relevance due to inflation.
Can’t we just abolish coins altogether? They make no sense whatsoever in this day and age. Just have every amount available as a paper bill, even the 5 forints.