The Reserve Bank of Fiji Governor has said one and two cent coins are still a legal tender and should be accepted for payments until 31st March 2009.

Savenaca Narube said the Reserve Bank has ceased issuing coins to commercial banks and they will still accept it as deposits.

Narube clarified that the decision to cease circulation of one and two cent coins was taken with considerable thought, evaluation and research including a public opinion survey.

He said on the 11th of March this year, Cabinet had approved changes to the nation’s coinage, which included the cessation of one and two cents, and added that legislative requirements were followed.

Narube also said these coins hardly circulate any longer, and due to the rise in income and prices, these coins have lost their value, and they do not change hands or circulate like other denominations.

He added that there is no question of cost of minting them as it would still cost money and unnecessary use of scarce public resources.

Narube highlighted that the country will save over $5 million in the next seven to ten years in minting costs alone for one cent and two cent coins.