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Canada Takes Penny Out of Circulation
February 3, 2013

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Canada is officially off the penny.

The Canadian Mint has stopped circulating the one-cent coin to banks and has issued a recall for all current one-cent holdings. Retailers can still accept pennies, until the supply runs out. However, the Government is encouraging retailers to adopt the new rounding rules.

One set of rules is as follows: A customer who encounters a bill for $4.99 will be asked to pay $5 even, without any change given. If the bill is $4.92, however, the customer will be asked to pay only $4.90.

That's the rounding scheme used in New Zealand. Other countries using that or similar rules include Australia, Finland, the Netherlands, and Norway. The Canadian Government also has its set of penny-by-penny rules.

The rounding rules, no matter which set retailers choose to use, don't apply to electronic transactions, such as credit card purchases or debit card transfers. Customers choosing to pay with plastic will still have to pay whatever the electronic systems that work out a down-to-the-penny amount require.

The move to drop the penny from circulation is a cost-cutting measure, according to the Canadian Government, which reported that the cost of making each one-cent coin worked out to 1.5 cents.

 

 

 

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