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Old May 15th 19, 05:09 AM posted to uk.finance
Chris in Makati Chris in Makati is offline
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First recorded activity by FinanceBanter: Nov 2015
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Default Why can't we get rid of 1p, 2p, 5p coins?

On Mon, 13 May 2019 15:59:43 +0100, "Commander Kinsey"
wrote:

On Mon, 13 May 2019 01:11:07 +0100, Chris in Makati wrote:

On Sun, 12 May 2019 16:24:04 +0100, "Commander Kinsey"
wrote:

Why can't we get rid of 1p, 2p, 5p coins? They're virtually worthless.


We can get rid of them, but the Treasury has decided not to.

If we did then prices would have to be rounded off to the nearest 5p,
and you can bet your life they'd be rounded UP to the nearest 5p.


Rubbish. Prices are governed by competition between businesses. If you currently buy something in Asda for 47p, they could make it 50p, but Tesco might make it 45p and everyone would go there instead.


So even if (and it's a very big if) Tesco did reduce the price from
47p to 45p and Asda increased it to 50p then the average price of that
product has increased by 0.5p.

You must have forgotten what happened in 1971 with decimalisation.
Prices had to be rounded off, and in almost every case they were
rounded upwards.

Rather than reducing the price to 45p, past experience has shown that
both stores would increase the price to 50p.