The Canadian Mint halted production of the penny yesterday in a move that announced last spring. This change (get it) will hopefully spread south to the US. (Actually that pun doesn’t work at all.) Cash purchases will be rounded up or down to the nearest five cent increment, but credit or check payments will still pay the correct amount.
The decision to phase out the penny was due to its excessive and rising cost of production relative to face value, the increased accumulation of pennies by Canadians in their households, environmental considerations, and the significant handling costs the penny imposes on retailers, financial institutions and the economy in general.