Opinion of the European Central Bank of 4 February 2009 at the request of Sveriges Riksbank on a draft law on the fifty öre coin ceasing to be legal tender (CON/2009/8)
Date: 2009-02-04
Institutions: European Central Bank
Subjects: Sweden, money, national currency, national law

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 4 February 2009 

at the request of Sveriges Riksbank 

on a draft law on the fifty öre coin ceasing to be legal tender 

(CON/2009/8) 

Introduction and legal basis 

On 29 December 2008 the European Central Bank (ECB) received a request from Sveriges Riksbank for 

an opinion on a draft law on the fifty öre coin ceasing to be legal tender (hereinafter the ‘draft law’). 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article  105(4)  of  the  Treaty  establishing  the 

European  Community  and  the  second  indent  of  Article 2(1)  of  Council  Decision  98/415/EC  of  29 June 

1998 on the consultation of the European Central Bank by national authorities regarding draft legislative 
provisions1,  as  the  draft  law  relates  to  means  of  payment.  In  accordance  with  the  first  sentence  of 

Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted 

this opinion. 

1. 

Purpose of the draft law 

Under the draft law, the fifty öre coin will cease to be legal tender with effect from 30 September 2010. 

The  reasons  for  the  draft  law  are  that  there  are  clear  indications  that  the  use  of  the  fifty  öre  coin  has 

declined and that it has a low circulation. 

This change also necessitates an amendment to the Law (1970:1029) on the rounding of certain amounts 

in öre, so that in future rounding will be to the nearest krona. 

2.   General Observations 

According  to  Chapter 9,  Article  14,  of  the  Swedish  Constitution,  Sveriges  Riksbank  has  the  exclusive 

right to issue banknotes and coins. Chapter 5, Article 1, of Sveriges Riksbank Act states that banknotes 

and coins issued by Sveriges Riksbank are legal tender. However, general rules concerning the monetary 

and payment system, such as decisions on certain Swedish banknotes and coins ceasing to be legal tender, 

are laid down by statutes enacted by Sveriges Riksdag (the Swedish Parliament). 

1 

OJ L 189, 3.7.1998, p. 42.  

 
 
 
 
 
                                                      
The ten öre coin was demonetised by the Law (1991:1190) on the ten öre coin ceasing to be legal tender. 

Older  fifty  öre  coins  struck  in  accordance  with  laws  and  regulations  prior  to  1 October  1992  were 
demonetised by the Law (2004:863) on the old fifty öre coin ceasing to be legal tender2. 

Sveriges Riksbank has now decided to abolish the fifty öre coin, subject to Sveriges Riksdag adopting the 

draft law on the fifty öre coin ceasing to be legal tender. 

The ECB acknowledges that Sveriges Riksbank has conducted an in-depth examination into the need for 

a  fifty  öre  coin,  taking  into  account  the  usage,  demand  for  and  cost  of  the  coin.  The  opinions  of  the 

general public and of the banks, the retail trade and cash-in-transit companies have also been taken into 

account.  The  consequences  of  withdrawing  the  coin  have  been  described,  as  well  as  any effects  on  the 

demand for other coin denominations and on general price levels. Sveriges Riksbank has also considered 
whether the withdrawal of the fifty öre coin could have any implications for inflation3. 

The  ECB  considers  it  important  that  there  should  be  sufficient  notice  of  the  proposed  change  and  a 

sufficient interval between the date when the draft law enters into force and the date when the fifty öre 

coin  ceases  to  be  legal  tender.  The  provision  of  an  appropriate  period  for  free-of-charge  redemption  of 

fifty öre coins of citizens would also be warranted.   

This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 4 February 2009. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

2  

3  

See ECB Opinion CON/2004/17 of 17 May 2004 at the request of the Sveriges Riksbank on two draft laws on certain old 
banknotes and coins ceasing to be legal tender. 
See Sveriges Riksbank’s report: Examination of the need for a 50-öre coin, reference number 2008-903-ADM. 

2