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Ryan Remiorz / The Canadian Press via AP
The household penny jar may soon become a thing of the past in Canada.
TORONTO — Canada has begun phasing out its penny, the nuisance one-cent coin that clutters dressers and costs more than its one-cent value to produce.
The Royal Canadian Mint on Monday officially ended its distribution of pennies to financial institutions.
Canadian Finance Minister Jim Flaherty announced last year they were a nuisance and had outlived their purpose.
While some 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 the penny exceeds its monetary value. Production is $11 million a year.
The coins, which feature two maple leaves and Queen Elizabeth II in profile, will remain legal tender until they eventually disappear from circulation.
'Nothing a penny will buy'
Opposition New Democrat Member of Parliament Pat Martin gave a poetic goodbye to the penny in Parliament on Monday.
"There's nothing a penny will buy any more, not a gum ball or small piece of candy," Martin said. "Note the penny is a nuisance. It costs too much to make. They clutter our change purse and they don't circulate."
“They build up in piles in old cookie jars under our beds and in our desk drawers. You can't give them away. They cost more than what they're worth. It's time to put them all out to pasture, put them out to the curb. No, the penny is useless, but there is one thing I'd say, I hope they don't start treating old MPs this way."
Google is marking the passing of the penny with a dedicated doodle on its Canadian home page.
The currency museum at Canada's central bank has already taken steps to preserve the penny's place in Canadian culture. A mural consisting of nearly 16,000 one-cent pieces has been assembled at the museum to commemorate the coin's history, said assistant curator Raewyn Passmore.
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 bills calling for the end of the U.S. penny, introduced in 2002 and 2006 by Republican Rep. Jim Kolbe, failed to advance in the House of Representatives.
The U.S. zinc lobby has been a major opponent to suggestions that the penny be eliminated.
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In Russia they are keeping the penny....but it is called the "Red Cent".
The thing is, if they had a policy of rounding DOWN to the nearest nickel for cash transactions, all of a sudden the penny would be the best friend of every store...
Of course they will jump at a chance to be able to round the amount they charge YOU up to a higher value.
If only our congress was that smart...instead they pork barrel us to death.....
As the article said rounded to the nearest, that means up or down.
The zinc lobby has fought eliminating the penny? Shocking! <sarcasm>
I wonder what the return is on their bribe money to our elected representatives?
Why do we need cash? The only people that love cash, are cheating on taxes and partnerships, or selling illegal goods. And, the only people worried about a paper trail from using only plastic, are doing something they're not supposed to be doing. How about the "War on Drugs?" No cash, no sale. Everyone being accountable for their own actions, and able to prove it. ELIMINATE CASH! And, the economy will straighten itself out.
Can we do this in America too? I hate coins. Quarters are nice, but so help me the rest...
Who knew there was a zinc lobby?
They've wanted to for years, too much resistance. Maybe we (the Treasury) can buy them up and restamp them.
How about, I'll keep using the penny, you can have all your transactions rounded up to a higher value, deal?
As the article said rounded to the nearest, that means up or down.
so every transaction ending in 3, 4, 8 or 9 cents is actually profiting a company more. Doesn't sound like much, but I'll be it adds up.
Yes, the US sure can abolish the penny, and it's long overdue. Australia and New Zealand dumped their penny years ago and their currency system works great, as I learned when I visited Australia. Prices are rounded up or down to the next nickel amount and it averages out.
A price that might be marked $9.99 is rounded down to $9.95 because the merchant doesn't want to post a price that says $10.00. When buying gas (petrol), a purchase of $25.68 is automatically rounded up to $25.70. A purchase of $25.67 is rounded down to $25.65.
Australia also has very workable gold-tinted $1 dollar and $2 dollar coins that are twice as thick as US coins. They are used effortlessly by people in their daily transactions. It's also time for the US to get rid of the $1 dollar bill. The $1 dollar bill wears out quickly and, like the penny, costs more than its face value.
It's not only the zinc lobby, but major retailers in the US that resist any change in the currency system. Why should America be run by powerful, narrow special interest lobbies that work against the national interest? Cheers to Canada! It's time for America to get on board and have a streamlined, efficient, 21st century currency that saves taxpayer money and benefits us all.
So much for a penny saved is a penny earned........ It still makes no Cents to me.
Hopefully now I'll finally stop getting random Canadian pennies back from the change I get in US stores.
They're worth more now.
As if it makes a difference whether their Canadian or US. We always get US pennies in our change...
Ok so I will ask the dumb question..
Does that mean everything has to end in .05 or .00? How will taxes work? how will they keep every thing even and never need a 1 cent pc?
All cash purchases will be rounded up to the nearest nickel. I would assume the rounding would be after taxes. So yeah, everything will cost up to .04 more.
Only if they round up... if they just straight round things you could be paying up to 2 cents more or 2 cents less.
It's rounded to the nearest .05. Some retailers may start working out their prices so that you always round up though. In Australia they did the same thing rounded to the nearest .05 and sometimes you'd pay less sometimes you'd pay more but really it's a matter of cents not a big deal and it tended to all come out in the wash anyway.
"...the government has issued guidelines urging store owners to start rounding prices to the nearest nickel for cash transactions." There will probably be unscrupulous store owners who round everything up. But those that simply follow the government's guidelines, I would dare say that for most people and businesses will come out about even at the end of the month.
Plus, since most people and the majority of businesses are conducting transactions electronically (auto-withdrawal, credit cards, ETF, etc.) or pay by check, it probably won't affect most people in any large way.
If it .01,.02, .06 or .07 they round down, .03, .04,.08, or .09 they round up.
Most people use cards now so it doesnt really make a difference. We're only really losing or gaining a couple pennies at a time.
Its too bad to see the penny go but we have too many coins as it is. Because of the $1 & $2 coin its not uncommon to be walking around with $30+ of change in your pocket or weighing down your purse.
I am so blown away by the sheer number of idiots who don't seem to understand how rounding works or just plain failed to fully read the article.
This sure would make sense in the USA. Just cumbersome with no value in today's world. We should also go to a dollar coin to replace the bill. In Europe the Euro coin works great. I know we tried this in the past, but did not do away with bills so it did not work. Time to try again to same money for the government and convenience for all citizens.
We have a dollar coin. They are gold colored
The $1 coin has been around for decades (remember silver dollars, when they were really made of silver?). Today they are the Sacagawea dollar which replaced the Susan B. Anthony dollar coin.
No one uses them, and very little will accept them (automated machines like vending machines, parking meters, mass transit, etc). For awhile only the USPS was giving them as change, but even they don't anymore.
When I worked retail and food service through high school and college, I'd only see at most 1 or 2 a year come through the register, and they were always just deposited, not used for change.
....how in the world is a coin more convenient to carry than a bill????...
Getting people to use the Dollar coin that we already have is EASY -- just stop making $1 bills. And if we got rid of the penny, then there is space in the till for the dollar coins (so, merchants cannot complain about no place for the dollar coin)
I hate the idea of the dollar coin. Too heavy and inconvenient even they were universally accepted.
What really ticks me off is getting dollar coins in change from a vending machine that accepts $5 bills. The same damn machine will not accept them as payment!
Simple question - how do you keep dollar coins in a wallet?
Please, someone explain this to me. I don't even like keeping quarters in my wallet because it weighs my pocket down too much. Paper dollars don't give me any problems.
It's the stripper lobby that is blocking the phasing out of the $1 bill.
Don't take my pennies or my $1 bills!
In 1943 when copper was needed for the war, the US penny was made of steel coated with zinc.
Our government, does not have the good cent's, to do the same thing, and get rid of the damn 1bill, while your at it.
kflann,
If you get rid of the $1 bill, how will strippers and bartenders make a living?
Yeah who wants to throw 5's that leaves little for those private dances LOL
@Tom
My husband told me once that when he was younger there were bars out west where they would throw quarters and nickles at the strippers (who would catch them in unmentionable places) because we didnt have the $1 bill anymore lol....so it can be done
Rose Colored Glasses,
You don't let your husband travel out west anymore, do you? LOL
Rose & Tom,
And what they can do with a roll of quarters is amazing.
An easy change to every cash drawer, remove penny and then you have an open slot for the dollar. I've been to Scandinavia a few times and nobody there misses the pennies. If you pay with cash you know it gets rounded to the nearest .05 and if you pay with credit/debit then there is no difference.
How practical...!
Gifting more of YOUR money to stores due to rounding purposes?
Practical? Maybe for the store.
The zinc lobby? How powerful is this zinc lobby? There was a quote yesterday which said that when a coin is so useless that people leave them behind at the cash register for the next person, it is time to eliminate them.
Seems we're finding ourselves behind the curve once again. The days of America being an innovative leader in the world are dead and gone.
So the tools in these other countries, that just had all their prices basically go up by $.01-.04.... And you say WE are behind the curve? Better than being exploited.
Gotnorice,
You are not getting it.
If the price is $5.37 it is rounded down to $5.35.
If the price is $5.38 it is rounded up to $5.40.
It evens out in the long run.
Gotnorice, you sure are behind the curve when it come to rounding.
When did they begin making pennies out of zinc? I thought they were still made of copper.
Early 1980s is when they went to mostly zinc. I believe there is still a bit of copper in the pennies, though.
In the early 80's the price of copper went up to such a degree that the U.S. Mint lost money on every cent it minted. Thus, pennies minted in 1983 and thereafter are mostly zinc (much cheaper than copper) with a copper coating.
Take one, rub it vigorously on a concrete sidewalk a few times, and the zinc shows through.
You can cut them in half with a pair of ordinary scissors.
canada has alot more smart politicians than we do and they prove it over and over.and they never get caught doing or saying as much dumb stuff as the clowns in washington.
Do the "Smart" politicians also get credit for effectively raising all prices in Canada by $.01-.04?
I assure you, the stores are more than happy to round up prices to a higher increment, and legally be able to take more of a customer's money. But who really wins in this situation?
I hope they request all the Canadian pennies here in America be returned. I'm sick of getting them in my change.
The U.S. stopped making copper pennies sometime in the '70's, I think. There are a few guys around who actually have a machine that sorts out the copper pennies from the rest, the copper being worth a lot more.
Don't know what they do with the gazillion zinc pennies in the process...
It was the early 80s, I think. My husband has trained me to look at all the pennies I get and keep the copper ones. Of course, we haven't actually DONE anything with all these copper pennies we are collecting....
There are people who are hoarding these old pennies. If the US declares that the penny will no longer be minted and used as currency, these folks can rush to metal buyers and sell the copper per pound for more than the pennies are worth. Probably a lot more. Right now, it is against the law to destroy currency.
Al Gore's father, late Senator Al Gore, had a zinc mine on his family farm in Carthage, Tn. I suppose, Al jr. owns it now though he doesn't need the money since Al Jezeera bought his cable network. But that is another story, isn't it..The article did say the House of Representatives refused to approve the bill to drop production. No surprise there.
The U.S. zinc lobby has been a major opponent to suggestions that the penny be eliminated.
Oh really, well then, ZINC YOU!
We'll be the last country anywhere to get rid of pennies, use coin dollars, and adopt the metric system because we are so reactionary, stubborn, and ignorant.
Speak for yourself and your asinine comments.
Mike, we got rid of "pennies" when we rid ourselves of the British and became a nation. The US has only had "cents".
How do I keep getting them in my change in Illinois? Talk about a nuisance.
Why in many places a penny will still buy your thoughts.....and two cents worth of opinions.
If we are going to change the our money, lets go all the way. Most people will be using cards or phones instead of money, so lets just keep only two bills and two coins. Keep the Dime and the Dollar coins and for bills, $20 and $100. Thats all we would need or do what France did in 1960 and change the value to make the penny worth 10 cents.
New franc
The value of the new French franc, in 2007 euros. Years shaded in light blue indicate fixed exchange rate to the euro.
In January 1960 the French franc was revalued, with 100 existing francs making one nouveau franc. The abbreviation "NF" was used on the 1958 design banknotes until 1963. Old one- and two-franc pieces continued to circulate as centimes (no new centimes were minted for the first two years). Inflation continued to erode the franc's value, but much more slowly than that of some other countries. The one-centime coin never circulated widely. Only one further major devaluation occurred (in August 1969) before the Bretton Woods system was replaced by free-floating exchange rates. When the euro replaced the franc on 1 January 1999, the franc was worth less than an eighth of its original 1960 value.
Australia did this years ago. When I first moved there, I thought shopkeepers were trying to rip me off when I bought something for say $6.97 and out of a ten I got back only 3 bucks! But then if I bought something for $8.94, I only had to pay $8.90, so it more or less came out even.
Our elected officials are more interested in what lobbyists want than what is best for the country. Pennies are expensive and are a pain. On military posts in Europe, concessionaires (Burger King, etc) would round up or down, as necessary. Pennies were a non issue. Do away with the thing.
When I was stationed overseas, on base agencies rounded for cash transactions. It was a bit strange at first but I quickly got used to it. It makes no economic sense to keep the penny. It's time to let it go.
They also use the $2 bill, which I'm all for using and getting rid of the $1 bill.
"Paying to have coins and paper money is the "cost of doing business" "it's the cost of having a full grown economy where prices stabilize and evolve from supply and demand, the little penny is the mediator in the economic high and low tides of product pricing" ~author Elaina Redmond, The Power of the Penny www.thepowerofthepenny.com