Fellow Canadians, be prepared to have your total amounts rounded up or down as the penny will soon be no more!
“The penny is a currency without any currency in Canada,” according to Finance Minister Jim Flaherty who announced the “penny dropping” in a news conference. The Royal Canadian Mint will no longer be producing pennies as of this fall. “Some Canadians consider the penny more of a nuisance than a useful coin,” read a released budget document.
According to the Canadian budget, the cost of minting a penny has risen to $11 million a year, or 1.6 cents each. That means that it costs more to make the penny than the penny’s worth. Overall, the penny cut won’t have much effect on our economy, it will just be an adjustment to your change purse.
Of course, once pennies are no longer being produced, they’ll still be accepted as change. But once they’re no longer in circulation, the customer and the stores will have to round up or down to the nearest nickel. Example: $5.56 will become $5.55, etc. We just have to brush up on our basic math skills.
Start collecting your pennies now! They may become a nostalgic heirloom once they start to dwindle, much like the two dollar bill. If you’re one of those people who have bottles and drawers filled with pennies, the government are recommending that you change them in or donate them to a charity.
But the real question, now, is this: what will convenience stores do with their “take-a-penny, leave-a-penny” trays? Did no one think of the convenience stores?!