UK Treasury "No Orders for 1 Penny and 2 Pence Production for the Time Being"

by Park Jaehyun

Published 25 Jul.2024 20:45(KST)

[Photo by Pixabay]

There are reports that the UK did not order 1 penny (about 18 won) and 2 pence (about 36 won) coins, the smallest denominations of its currency, this year.

According to major foreign media including the BBC and Yonhap News Agency, a spokesperson for the UK Treasury said that the current quantity of coins in circulation is sufficient, and it is expected that no new orders will be placed with the Royal Mint for the next few years.

Previously, in 2018, 1 penny and 2 pence coins were also not issued.

With the recent surge in card and digital payments leading to a sharp decline in cash usage, there are speculations that these two types of coins might be completely abolished.

Regarding this, the Treasury spokesperson explained, "We are not abolishing the 1 penny and 2 pence coins," adding, "It means that there are enough of these coins in the current system so there is no need to place new orders."

Last year, cash payments in the UK accounted for 12%, down from 14% in 2022.

However, according to the UK Financial Conduct Authority (FCA), 3 million people still rely on cash payments, and especially among low-income groups, there is a tendency to be excluded from digital payments.