Thursday, March 29, 2012

Goodbye Canada Cent

Via Yahoo:

Canada to pull the penny from circulation

The Canadian government announced on Thursday that it plans to pull the penny from circulation at the end of 2012, saying the copper-coated currency is more expensive for the Royal Canadian Mint to produce than its actual currency value.
"Pennies take up too much space on our dressers at home. They take up far too much time for small businesses trying to grow and create jobs," said Finance Minister Jim Flaherty. He also said it costs 1.5 cents to produce each penny.
"We will, therefore, stop making them," he said.
Nonetheless, the news has been causing quite a stir across Twitter today.
The U.S. faces a similar dilemma, where it costs nearly two cents to produce a single penny. U.S. pennies are in fact composed primarily of zinc, and have a thin copper coating. The Wall Street Journal wrote that the Obama Administration has proposed using less expensive materials in the production of pennies and nickels, but public misinformation on the perceived value of coins would likely stir up controversy.
It could also be disastrous news for at least one Portland, Oregon, nightclub.
During the 2008 presidential campaign, Obama discussed phasing out the penny, saying, "We have been trying to eliminate the penny for quite some timeit always comes back. I need to find out who is lobbying to keep the penny." However, Obama said that fellow presidential Illinois native Abraham Lincoln shouldn't be phased out from our currency. "Oh, you think it's Illinois? You're blaming us?" he joked. "I will seriously consider eliminating the penny as long as we find another place for Lincoln to land." Lincoln, of course, already graces the front of the $5 bill.
The Canadian penny will still be accepted indefinitely as a form of currency, but the government says it will eventually require cash transactions to be rounded to the nearest five-cent increment. Customers are already forbidden from using more than 25 pennies in a single purchase.
"The penny has simply outlived its purpose," said Senator Irving Gerstein. "It is a piece of currency, quite frankly, that lacks currency."
The Associated Press notes that some countries have already eliminated pennies or their monetary equivalent from circulation, including Finland, Sweden, Norway, Denmark, Israel, the Netherlands, Australia, New Zealand, France, Spain, South Africa, Switzerland and Brazil.

 
Just one more year of this.

11 dollars worth, for Comments/Questions click here.:

Kelly said...

That's crazy! So is this:"Customers are already forbidden from using more than 25 pennies in a single purchase."

Man said...

That's crazy! So is this:...

Well, I have been to many local stores that forbid cents and any bill over $20. But that is not a law just a choice.

Still I use pennies and find enough each year to buy lunch.

Dr. Math said...

It's too bad that the Presidential Dollars and the Canadian Cents have to go. I usually found a few of each every year and now I probably won't find any. Aparently this isn't the greatest year for coins.

Man said...

Aparently this isn't the greatest year for coins.

Already they are calling for the end of nickels in Canada and rounding everything up to the nearest ten cents.

The conference this week to secure a national e-cash system is just talks but seems to be the future in Canada and the US.

Dr. Math said...

I remember your post on that a while ago. It will be sad to see coins go entirely so hopefully I don't live that long.

Lightw4re said...

A lot of link in this post! Here's a new one, the text in the Budget 2012 of the Federal Gouvernment of Canada.
http://www.budget.gc.ca/2012/themes/theme2-eng.html

Man said...

A lot of link in this post! Here's a new one

Yeah, I just copied and article from Yahoo. I needed to spread the news quickly.

That link you shared is great, thanks. Lots of great facts.

Tyler Lawrence said...

This is awful news. It is bad news for collectors because people are going to start to hoard Canadian pennies.

Man said...

...bad news for collectors because people are going to start to hoard Canadian pennies.

True because once they start to hoard is does nothing for value. It just delays true value until the hoarders start reselling 10-20 years from now.

Tyler Lawrence said...

I find it odd that I posted the comment, and in then today there were nothing but Canadian pennies in all of the registers at work today.

Man said...

I find it odd that I posted the comment, and in then today there were nothing but Canadian pennies in all of the registers at work today.

Could be the opposite effect. Someone wanted to dump off there can of Canada pennies fearing they will be useless by 2013.