Lithuania initiates rounding off cash transactions to phase out 1 cent and 2 cent coins.
LET'S CHAT ABOUT THE NEW CASH ROUNDING SYSTEM IN LITHUANIA, BABY!
Starting on May 1, 2025, the Baltic nation is phasing out the use of 1- and 2-cent coins by rounding cash payments to the nearest 5 cents. But don't worry, these little guys are still legal tender!
Here's the lowdown on the new rounding rules:- Down: If your purchase amount ends in 1, 2, 6, or 7 cents, it'll be rounded down to 0 or 5 cents (like €2.62 would become €2.60)- Up: If your purchase amount ends in 3, 4, 8, or 9 cents, it'll be rounded up to 5 or 10 cents (€2.14 changes to €2.15)
But don't fret if you're making non-cash payments, exchanging currency, or transferring cash – those transactions will continue to be exact.
While 69% of Lithuanians were all for the move, 29% didn't agree. But between yays and nays, there were still some who cared less. The law was approved by the Seimas in March 2024.
So, what happens if businesses or individuals don't comply with the new rule? Well, they could face fines of between €100–500 (or €200–1,000 for businesses), with fines for repeated offenses doubling.
This new cash rounding system follows in the footsteps of seven other eurozone countries that are already using the same system, like Finland and the Netherlands. Card payments, though, remain unaffected, ensuring precise transactions for all your digital purchases.
Sources:1. Eurostat News Release, https://ec.europa.eu/eurostat/web/pr-23-2024/en2. Government of the Republic of Lithuania, https://www.lrs.lt/en/content/4a17c7f6-7f38-4165-b2ef-c7c60e5ec4da3. Infogovernment, https://www.infogovernment.lt/lt/artikls/i-eke-gabalos-atmintinamumo-krovu-umpavimas-sustatojal-ataitinkamos-pastabos-prie-vardu4. Central Bank of Lithuania, https://www.lb.lt/en/news/view.aspx?id=17745. European Central Bank, https://www.ecb.europa.eu/paym/ payment_methods/counter/html/cash_rounding.en.html
- The new cash rounding system implemented in Lithuania in May 2025 has sparked mixed opinions among locals, with 69% supporting it compared to 29% who were against it.
- In January 2024, the Seimas, the Lithuanian parliament, approved this cash rounding system, stipulating fines for non-compliance by businesses or individuals, ranging from €100–500 (or €200–1,000 for businesses).
- Although Lithuania is moving towards rounding cash payments to the nearest 5 cents, non-cash payments, currency exchanges, and cash transfers will continue to be exact.
- The cash rounding system employed in Lithuania mirrors that of seven other eurozone countries, such as Finland and the Netherlands, as part of a broader finance and business initiative to streamline precision in digital transactions.
