Consumers urged to report retailers rejecting five-cent coin Allexer Namundjebo The director of banking services at the Bank of Namibia (BoN), Sencia Kaizemi-Rukata, says any shop or merchant refusing to accept the five-cent coin  should be reported. She reminded retailers that the coin remains legal tender.  Kaizemi-Rukata was speaking at the economic reporting workshop hosted by BoN on Monday. “If there is any shop refusing to accept the coin or South African rand, those shops must be reported so that appropriate actions are taken,” she said.  She stressed that although the minting of the five-cent  coin stopped in 2018, it has not affected its legal status. “The five-cent coin is still legal tender. Retailers are obligated to accept it as a means of payment. The fact that we no longer mint the coin does not alter its legal standing,” she said. Earlier this year, the bank also warned retailers that refusing the coin as payment was illegal after consumers raised complaints.  She explained that the coin must still be accepted for transactions and retailers are required to provide change when necessary. BoN discontinued minting the coin in 2018 because the cost of production outweighed its value.  Kaizemi-Rukata clarified that this decision did not affect its legal status.  She reiterated the central bank’s commitment to respecting all forms of legal tender.  “We are committed to ensuring that all forms of legal tender are respected in the market. This is to protect both consumers and the integrity of our monetary system,” she said. In 2019, BoN also confirmed that the five-cent coin would remain legal tender indefinitely despite the end of minting.  At that time, the decision was linked to low recycling of the coin due to accumulation in households. Last month, during its 35th anniversary celebrations, the bank unveiled redesigned banknotes and coins, introduced a new 20-cent coin, and confirmed the phasing out of the five-cent coin. The workshop also focused on the central bank’s anniversary and the evolution of central banking in Namibia while building media capacity to report on economic and financial issues.

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Refusing five-cent coins is illegal Allexer Namundjembo  Refusing to accept the five-cent coin as payment is illegal, the Bank of Namibia has warned. This follows complaints from consumers about retailers rejecting the small denomination. Sencia Kaizemi-Rukata, director of banking services at the BoN, confirmed that the five-cent coin remains legal tender despite no longer being minted since 2018. “The five-cent coin is still legal tender. Retailers are obligated to accept it as a means of payment. The fact that we no longer mint the coin does not alter its legal standing,” she said. The central bank stopped producing the coin in 2018 due to the high cost of production, which outweighed the value of the coin itself. Kaizemi-Rukata explained that the decision to discontinue production did not affect its use as legal tender. “While the five-cent coin is no longer in circulation, it remains valid for transactions. Consumers should not be refused service when offering it, and retailers must ensure they provide change when applicable,” Kaizemi-Rukata said. Despite the cessation of minting, BoN advised retailers and consumers to recognise that the five-cent coin continues to hold value in transactions. “We are committed to ensuring that all forms of legal tender are respected in the market. This is to protect both consumers and the integrity of our monetary system,” she said.

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