Did you know that in the Economic Action Plan 2012, the Government announced it will eliminate the penny from Canada’s coinage system?
That’s right. As of today, the Royal Canadian Mint will no longer distribute pennies.
Over time, the penny’s burden to the economy has grown relative to its value as a means of payment. It costs the Government 1.6 cents to produce each new penny. The estimated cost to the Government of supplying pennies to the economy is about $11 million a year.
The penny will retain its value indefinitely and can continue to be used in payments. However, as pennies are gradually withdrawn from circulation, cash transactions should be rounded to the nearest five cents in a fair and transparent manner.
You can redeem pennies at your financial institutions and the Government encourages Canadians to consider donating them to charities.