Canada Drops The Penny
Wonder how long before the US does this:
Canada minted its final penny today as Finance Minister Jim Flaherty said the coin was too expensive to produce and no longer needed for business.
It also costs more than a penny to make.
The longest-serving finance minister in the Group of Seven nations promised in his March 29 budget to save C$11 million annually by eliminating the coin that he says costs 1.6 cents to mint. The price of copper, which is used in the penny’s production, has surged more than 330 percent since 2000.
While electronic transactions — and presumably checks, since those are processed electronically — will still be priced to the cent, cash transactions will be rounded to the nearest nickel.
It’s sad (a friend in Washington State says she’s gonna pick up a roll of Canadian pennies if she gets there before they’re gone), but if the cost of producing it is more than what it’s worth, then it’s got to be done. I expect American pennies to go the same way in the not-too-distant future.