Denmark outsources minting coins to Finland

One fundamental question businesses face is: Should one produce or outsource?

Denmark has decided to outsource the minting coins to Finland.

The Mint of Finland has now begun to produce Danish coins. The coins will be put into circulation in Denmark later this year.“We chose the Mint of Finland after a transparent tender process and we are convinced that they will be able to meet our expectations,” says Governor Hugo Frey Jensen, Danmarks Nationalbank.

It was Hugo Frey Jensen himself who pressed the button to start production of Danish 20-krone coins during a visit to the Mint of Finland in the southern Finnish city of Vantaa. In the near future, the Mint of Finland will also start producing the other Danish coins. “Ever since the tender process, production of Danish coins has been a big and important task for us. We are proud to celebrate the start of production,” says Jonne Hankimaa, CEO of the Mint of Finland.

Although all Danish coins are now minted in Finland, their appearance has not changed. The only difference is that the year on the new coins is 2017.

Reasons? Falling demand of coins and banknotes has made the activity financially unviable:

Payment patterns have changed and demand for new banknotes and coins has been falling for a number of years. Hence it could not be justified financially to keep up an own production of banknotes and coins at Danmarks Nationalbank.

A tender process for production of Danish coins was initiated in December 2015 and a 4-year framework agreement was subsequently signed with the Mint of Finland.

No agreement has yet been concluded with a supplier of banknotes. Danmarks Nationalbank has just published a timeline for the forthcoming tender for banknotes, and a supplier is expected to be found in early 2018.

Hmm.

But the cost of printing and minting is hardly much especially given the seignorage, the State gets from this activity. Now, it seems Denmark has found it even cheaper to mint the coins via Finland (and print the currency later).

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