Canadian Penny Production To Stop By Canadian Government

By on Mar 31, 2012 in Banking, Business, Economy, North America, World Comments
Canadian Penny
Canadian Penny
Image Credit: Royal Canadian Mint

The Canadian penny will be phased out because of the rising cost of metals according to Finance Minister Jim Flaherty during the Canadian government’s 2012 federal budget announcement on Thursday, March 29, 2012.

“The penny is a currency without any currency,” Finance Minister Jim Flaherty was quoted saying in a report. He also added that pennies “take up too much space on our dressers at home.”

Reports said that the Canadian penny costs the Canadian government 1.6 cents to produce. They need at least $130-million per year to keep it in circulation. The government thinks that it does not make sense to keep the 1-cent coin going.

Canada will mint its final penny this April and it will stop all distribution of pennies to the country’s financial institutions few months later as it attempts to withdraw them from circulation, international reports said.

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