Where did the idea of dicthing 1 sen come from?
The Australian dollar replaced the Australian pound on 14 February 1966 as part of its decimalisation process. At the time of introduction, 1, 2, 5, 10, 20, and 50 cent coins were issued. $1 and $2 coins followed in 1984 and 1988 respectively. The one- and two-cent coins were discontinued in 1991 and withdrawn from circulation.
CBC News has an all rounded writing about the one cent economy :
Save the penny or leave the penny?
And reason for EU to make 1 cent Euro? Despite Finland and Netherland do away with the 1 cent coin.
The European Union wanted to create a currency that would compete on the global market with the U.S. dollar.
“It made a lot of sense for the value of the euro to be broadly proximate to that of the dollar,” Hansen said.
The euro was introduced at a value of $1.18 US. It fell to a low of 82 cents US in October 2000, then bounced to a high of $1.38 US in July 2007.
“If you had a currency whose nominal value was five times that, you wouldn’t have that obvious comparability with the U.S. dollar,” Hansen said.
“That was much more important to policy makers than whether the Finnish or the Dutch were happy with small coins,” he said.
—-Randall Hansen, political science professor, University of Toronto