Canadian

Canadian government will stop producing pennies because it costs more

Did you know that the Canadian government will stop producing pennies, because it actually costs 1.6 cents to produce and it can save $11 million a year by getting rid of the coins.

“Effective February 4, 2013, the Canadian government will not distribute any more pennies and that may mean you may lose or earn a few pennies when making purchases in cash.
As part of its Economic Action Plan 2012, the government announced that the Royal Canadian Mint will cease distribution of the penny to save the government $11 million a year. It was widely reported that producing the one-cent coin is costing the government 1.6 cents each.
This means that the penny can still be used to pay for any money transactions but consumers and businesses should not expect pennies for change. Instead, cash transactions will be rounded up or down. If pennies are not available for cash transactions, the government guidelines urged businesses to round up or down “”in a fair and transparent manner.””

 

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