Canada Stops Making “Cents”–Is US Next?
Canadians better hope their prices end in increments of 5 or 10, as they have officially stopped making pennies!
Finance Manager Jim Flaherty stamped the last .1 coin at the Canadian Mint Friday, marking the end of the penny in the northern country. Because of the price of copper, Canadian officials say the coin has gotten too expensive to make, and all too often does NOT wind up being used as currency. Studies by Canadian officials show it will have little or no effect on inflation or other financial transactions. Canadian officials said more people have them end up in jars, to be cashed in for paper currency, than being used in transactions.
How will retailers deal with this? They have agreed to round transactions up or down to the nearest number divisible by .5 (the nickel). Will the US follow suit? The United States is facing the same financial issues as Canada, and while some officials believe we will eventually do that, it is not forseen in the near future. All told, Canada has made over 35 billion pennies since 1908. The Canadian penny has lost nearly 95 percent of it’s purchasing power since they first began to be made many years ago.