The Canadian penny’s distribution has ended, though it’s not clear how long the little coins will remain in circulation.
From Monday onward, all cash transactions will either be rounded up or down to the closest five cents.
Canadian officials decided to get rid of the penny , because it actually costs 1.6 cents to produce. The Province reports that without it, the federal government hopes to sage $11 million each year.
The last Canadian penny was actually minted on May 4, 2012, but they will no longer be distributed from the mint as of Monday, February 4, 2013.
There are still about six billion pennies in circulation and they will remain legal tender until the Mint reclaims all of them. Mint Spokeswoman Christine Aquino stated of the decision:
“We have never done this in Canada. We estimate three to four years [to get pennies out of circulation].”
The Globe and Mail notes that most retailers will follow the federal government’s guidelines to round cash to the nearest nickel. Canadians will also be able to redeem their pennies at their local bank, which may require them to be rolled properly. They can also make donations to charity using them.
A recent survey showed that only 52.9 percent of retailers are ready to phase out the penny. Most retailers also believe that the new changes will cost their businesses $5,000 or less.
Charities that are accepting penny donations include the Free the Children campaign, the Small Animal Rescue Society of British Columbia, and the North Shore Resources Society.
Do you think the United States should follow Canada’s example of getting rid of the penny?
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