Canada says goodbye to the penny

Canada has begun phasing-out its penny, which now costs more to produce than its monetary worth

Topics: ,

Canada says goodbye to the penny (Credit: Wikimedia Commons)

TORONTO (AP) — Canada has begun phasing-out its penny, whose production costs have come to exceed its monetary value.

The Royal Canadian Mint on Monday officially ended its distribution of one-cent coins to financial institutions.

While people may still use pennies, the government has issued guidelines urging store owners to start rounding prices to the nearest nickel for cash transactions. Electronic purchases will still be billed to the nearest cent.

The government has said the cost of penny production is $11 million a year, and that the coins, which feature two maple leaves and Queen Elizabeth II in profile, would remain legal tender until they eventually disappeared from circulation.



You Might Also Like

Google is marking the passing of the penny with a dedicated doodle on its Canadian home page.

New Zealand, Australia, the Netherlands, Norway, Finland, Sweden and others have also dropped the penny.

The U.S. Treasury Department has said the Obama administration has looked at possibly using cheaper materials to make the penny, which is now made of zinc.

Two separate bills calling for the end of the penny, introduced in 2002 and 2006 by Republican congressman Jim Kolbe, failed to advance in the U.S. House of Representatives.

The American zinc lobby has been a major opponent to suggestions that the penny be eliminated.

More Related Stories

Featured Slide Shows

  • Share on Twitter
  • Share on Facebook
  • 1 of 11
  • Close
  • Fullscreen
  • Thumbnails
    jkrebs04, DesignCrowd.com

    Cities without landmarks

    Slide 1

    Niagara Falls, U.S./Canada

    akvarog, DesignCrowd.com

    Cities without landmarks

    Slide 2

    Sydney Opera House, Sydney, Australia

    iMAGICations, DesignCrowd.com

    Cities without landmarks

    Slide 3

    Mount Rushmore, South Dakota, U.S.

    jhgraphicsusa, DesignCrowd.com

    Cities without landmarks

    Slide 4

    Eiffel Tower, Paris, France

    Robert R., DesignCrowd.com

    Cities without landmarks

    Slide 5

    Colosseum, Rome, Italy

    Anythingoes, DesignCrowd.com

    Cities without landmarks

    Slide 6

    Taj Mahal, Agra, India

    Sergio Coelho, DesignCrowd.com

    Cities without landmarks

    Slide 7

    Siena Cathedral, Siena, Italy

    Anythingoes, DesignCrowd.com

    Cities without landmarks

    Slide 8

    Christ the Redeemer, Rio de Janeiro, Brazil

    iMAGICations,DesignCrowd.com

    Cities without landmarks

    Slide 9

    Arc de Triomphe, Paris, France

    iMAGICations, DesignCrowd.com

    Cities without landmarks

    Slide 10

    Lost City of Petra, Jordan

  • Recent Slide Shows

Comments

0 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>