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4 Jan 2002
Dear Sir,
Why did the Euro authorities not take the example of the United States and limit the number of the sub euro coin denominations. In the United States they have just four coins: the penny (1¢), the nickel (5¢), the dime (10¢) and the quarter (25¢). Despite the low value of the dollar in the United States - relative to their cost of living - they still do not have a dollar coin. In Euroland we have six sub euro coins 1¢, 2¢, 5¢, 10¢, 20¢ and 50¢.
Presumably the reason for the multiplicity of coins is to cut down on the number of coins in ones pocket, which to an extent it does, but with the confusion of having a multiplicity of similarly sized coins and the laughingly small 1¢ coin. The reduction in the number of coins is not in fact very great. If one looks at 99¢, the largest sub euro or sub dollar amount, the minimum number of American coins required is 9: three quarters, two dimes and four pennies. For the euro the minimum number of coins is 6, which is only three coins less than for the American currency. Surely, on balance, the American system is better.
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