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.
