Last month, we talked about a small note in Obama’s budget that called for the use of more “cost-effective” materials when minting coins. Currently, lower denomination coins are made at loss: Pennies cost 2.4 cents, nickels 11.2.
Of course, the most cost-effective way to mint pennies would be to not mint pennies. Unfortunately, it doesn’t look like the government has any plans in that direction.
Up north, however, it’s another story. Canada plans to pull the penny from circulation this year, the Atlantic reports.
The Royal Canadian Mint will stop minting pennies this fall, due to the coins low purchasing power and general uselessness. Bloomberg quotes Canadian Finance Minister Jim Flaherty saying, “Pennies take up too much space on our dressers at home” and “they take up far too much time for small businesses trying to grow and create jobs.”
Businesses will continue to take the penny as it is removed from circulation. Future cash transactions will be rounded to the nearest nickel, although non-cash payments will still round to the penny.
