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Canada The Almighty Buck News

Canada To Stop Producing Pennies In 2013 362

Posted by timothy
from the thought-they-were-made-here-in-america dept.
First time accepted submitter master_kaos writes "Canada is going to stop producing pennies in February 2013 to help save the tax payers $11 million per year. Cash transactions will be rounded to the nearest nickel. Cheque/Credit Card transactions are not affected."
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Canada To Stop Producing Pennies In 2013

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  • US military did this (Score:5, Informative)

    by YrWrstNtmr (564987) on Thursday January 03, 2013 @03:47PM (#42465749)
    Late 80's, on european bases. Round up or down to the nearest 5 cent increment. Worked like a charm. The only place pennies were taken was the Post Office.
  • by JonMartin (123209) on Thursday January 03, 2013 @03:49PM (#42465773) Homepage
    The Mint stopped making new pennies last May (http://www.cbc.ca/news/canada/manitoba/story/2012/05/04/mb-canada-last-penny-mint.html). But they are still in circulation. What happens on February 4th is the Mint stops putting pennies it gets back into circulation. What is unclear is when exactly stores will be required to stop giving pennies out.
  • Re:Excellent; (Score:5, Informative)

    by Capt.DrumkenBum (1173011) on Thursday January 03, 2013 @03:51PM (#42465791)
    Did you miss the part where it said purchases would be rounded to the nearest nickle?
    As a Canadian I can tell you that the pennies will disappear quickly, because the banks have been told to collect them.
    The place I get my morning breakfast has already started rounding to the nearest nickle. My breakfast comes to $3.66 total, and I am always asked for $3.65

    I for one, say "About bloody time!"
  • Re:Copper prices (Score:5, Informative)

    by Anonymous Coward on Thursday January 03, 2013 @03:56PM (#42465831)

    There hasn't been any significant copper in a canadian penny since 1996.

    94% steel, 1.5% nickel, 4.5% copper (as plating)

    A big problem is that the penny is just useless. Nobody uses them, except maybe a handful of annoying old grannies who take 25 minutes to buy a cup of coffee.

    So, they just get tossed into coin jars. Since they disappear from circulation almost immediately, and the government is (was) minting increasing amounts to make up for this. They don't get used either, just tossed into coin jars.

    Those old copper pennies, from pre 1996, are worth ~2 cents, but the value of copper fluctuates pretty wildly.

    The fact that there is such a thing as inflation is no shock to anybody, and not really a part of this story.

  • by YrWrstNtmr (564987) on Thursday January 03, 2013 @04:02PM (#42465911)
    Neither. To the *nearest* 5 cent increment, be it up or down.

    Let's assume the transaction is right around $1:
    0.98, 0.99, 1.00 ,1.01, 1.02 = $1.00
    1.03, 1.04, 1.05, 1.06, 1.07 = $1.05
    1.08, 1.09, 1.10, 1.11, 1.12 = $1.10

    It ends up working pretty evenly.
  • Re:Bad move. (Score:5, Informative)

    by YrWrstNtmr (564987) on Thursday January 03, 2013 @04:05PM (#42465929)
    Large stores will get a non taxable "profit" from raising to the nearest nickel, small ones probably will get some loss from raising to the lowest nickel.

    How so? The entire transaction is rounded up or down, to the nearest nickel. If you buy more than one item, that screws the 1 or 2 cent price fixing scheme.
  • Re:Hidden-ish cost (Score:5, Informative)

    by localman57 (1340533) on Thursday January 03, 2013 @04:13PM (#42466063)
    There's nothing to stop them from doing that now... If the market will support it, they'll raise prices. Just like now...
  • by ZombieBraintrust (1685608) on Thursday January 03, 2013 @04:15PM (#42466079)
    Bad math in first post.
    9.95 == 9.95
    9.96 == 9.95
    9.97 == 9.95
    9.98 == 10.00
    9.99 == 10.00
    10.00 == 10.00
  • by kinadian (136810) on Thursday January 03, 2013 @04:17PM (#42466105)

    Actually, it's not unclear. Right in the Mint's website (linked to in the article): "Moreover, pennies can still be used in cash transactions indefinitely with businesses that choose to accept them."

    The penny will remain legal tender for as the foreseeable future. As you stated, the only thing happening now is that the mint will no longer be distributing pennies after February 4th, 2013.

    It's not mentioned on the website, but I have also heard that if you bring your pennies to the bank on or after Feb 4, they will be collected and returned to the mint where they will be destroyed.

  • Re:Excellent; (Score:2, Informative)

    by minogully (1855264) on Thursday January 03, 2013 @04:36PM (#42466391) Journal

    Sorry, totally my fault, I was reading too quickly and I didn't read the first part of your sentence - "The metal used to make"

    Thanks for the correction, I don't want to mislead anyone.

  • Re:Excellent; (Score:5, Informative)

    by Capt.DrumkenBum (1173011) on Thursday January 03, 2013 @05:08PM (#42466997)
    This is an example of US government stupidity. All they have to do is stop making $1 bills. The rest will take care of itself.
    In Canada the banks were told to collect $1 bills and turn them over to the mint. It took about a year for the $1 bill to disappear.
  • Re:Excellent; (Score:5, Informative)

    by sortius_nod (1080919) on Thursday January 03, 2013 @06:04PM (#42467853) Homepage

    The higher denominations are always more likely to be spent though. If you have a jar of 1c coins vs a jar of $1 coins, a person is more likely to dip into the $1 jar than the 1c jar. Who wants to count out 1500c for a 6 pack of beer? I'd rather I with the 15 $1 coins.

    As a side note, us Aussies got rid of our 1c & 2c coins years ago, hasn't hurt our economy, & our dollar is at US$1.05.

  • Re:Hidden-ish cost (Score:4, Informative)

    by compro01 (777531) on Thursday January 03, 2013 @06:09PM (#42467919)

    1. The Currency Act [justice.gc.ca] already has provisions for jokers like you. The penny is not legal tender for a payment of over 25 cents. Similar limitations are in place for all coins.

    2. Worn? You're talking about a steel disc. Pennies don't wear out, they get considered worthless and tossed in jars (or worse, the trash) and more need to be made to maintain its availability for circulation.

  • by godel_56 (1287256) on Thursday January 03, 2013 @06:09PM (#42467923)

    Australia got rid of 1 cent and 2 cent coins, and 5 cent coins are looking endangered. Nobody cares.

    Retailers round the final total at the till, not the individual item prices, so unless you're just buying just one item your bill is just as likely to go down as up.(by a whole 2 cents maximum). Electronic transactions are not rounded.

    We also replaced one dollar and two dollar notes with coins, again with no dramas.

  • Re:Excellent; (Score:2, Informative)

    by Anonymous Coward on Thursday January 03, 2013 @09:21PM (#42470135)

    This is because we don't have national sales taxes. Sales taxes are set by the state, county, or even city levels. This makes advertising prices a nightmare if you include the taxes. Without including, you can send out national advertisers that say $19.99, and let the individual stores worry about the tax rates. Over in Europe, you have the same tax rate everywhere in the country.

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