Canada Gets Rid of the Penny, Saves Estimated $11 million in Production Costs

Commodity metal costs are extremely high this spring, and Canada has taken a unique approach to cut back on expenses: on May 4 the Canadian Mint minted its very last penny. The 1 cent will of course continue to be accepted as regular currency, but store owners are being encouraged to start rounding their prices to the nearest 5 cent denomination, rather than nearest one cent. The Canadian government estimates that it will save about $11 million in production costs because of its decision to stop minting the 1 cent. Ironically enough, the U.S. had actually proposed eliminating the U.S. penny many years ago, back in 2011, but the bill never went through. Last year, the U.S. Mint produced almost 5 billion pennies, at a cost of 2.41 cents a piece. U.S. tax payers could have saved about $70 million by not having to pay for penny production this year.
-Daily Finance


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