The Canadian Finance Ministry announced last week that it will end the production of pennies later this year as part of an austerity budget designed to cut costs.
"The penny is a currency without any currency in Canada, and it costs us 1.5 cents to produce a penny,” said Finance Minister Jim Flaherty.
While some applauded the move, others said that they were worried that it would allow retailers to sneak through price increases, according to a Reuters story.
The Canadian government said that pennies already in circulation will remain legal tender until they disappear from circulation. It also noted that New Zealand, Australia, the Netherlands, Norway, Finland, Sweden and others "have made smooth transitions to a penny-free economy."
"The penny is a currency without any currency in Canada, and it costs us 1.5 cents to produce a penny,” said Finance Minister Jim Flaherty.
While some applauded the move, others said that they were worried that it would allow retailers to sneak through price increases, according to a Reuters story.
The Canadian government said that pennies already in circulation will remain legal tender until they disappear from circulation. It also noted that New Zealand, Australia, the Netherlands, Norway, Finland, Sweden and others "have made smooth transitions to a penny-free economy."
- KC's View:
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One has to think that as we also try to save money in the US, eliminating the penny would be a natural tactic. On the other hand, the Congressional hearings about the subject would probably take a decade...
To me, this is such a non-issue ... as long as the Canadians don’t get rid of their “Loonie” and “Toonie” coins. (Only because I love the names.)
