Taipei: Despite the production cost of Taiwan's NT$1 (US$0.03) coin exceeding its face value, the central bank stated that it has no plan to halt circulation due to continued public demand.

According to Focus Taiwan, the announcement comes in the wake of a global trend to phase out low-denomination coins, highlighted by the U.S. Treasury's recent decision to stop minting the one-cent coin (penny) in early 2026. Taiwan's central bank, in a Facebook post, explained that international inflation and rising material costs have prompted many countries to reevaluate their use of small-denomination coins. For instance, the minting cost of a U.S. penny has nearly tripled over the past decade to US$0.0369, and its discontinuation is projected to save the U.S. government tens of millions of dollars annually.

Taiwan finds itself confronting a similar challenge, as the central bank noted that by February 2025, over 8 billion NT$1 coins were in circulation. Data from 2023 indicated that each NT$1 coin cost NT$1.54 to produce, surpassing its nominal value.

Despite these circumstances, the central bank underscored its decision to continue issuing the coin, pointing to its persistent public utilization. The bank also encouraged citizens to actively participate in the recirculation of unused coins.

To facilitate this, a coin recirculation program was introduced in 2014, enabling individuals to deposit coins at convenience stores, supermarket chains, and through electronic wallets such as EasyCard. Additionally, major metro systems and some ATMs have been equipped to support coin deposits.

The bank reported that coin recovery volumes are on the rise while net issuance is declining annually, indicating the program's success in promoting coin recirculation.