In Canada, the phase out of the penny begins
TORONTO (AP) - Canada has begun phasing-out its penny, whose production costs have come to exceed its monetary value.
The Royal Canadian Mint on Monday officially ended its distribution of one-cent coins to financial institutions.
While people may still use pennies, the government has issued guidelines urging store owners to start rounding prices to the nearest nickel for cash transactions. Electronic purchases will still be billed to the nearest cent.
The government has said the cost of penny production is C$11 million (S$14 million) a year, and that the coins, which feature two maple leaves and Queen Elizabeth II in profile, would remain legal tender until they eventually disappeared from circulation.