Devin Fuentez
February 5, 2013Type: Business CEJ 2 #
Canada stops distribution of penny coin
The Canadian penny is being withdrawn from circulation because production costs have exceeded its financial value.
The Royal Canadian Mint will no longer distribute the coin to financial institutions around the country, but it will remain legal tender.The government has advised shop owners to round out prices to the nearest nickel for cash exchange.Other countries that no longer use the penny include New Zealand, Australia, the Netherlands, Finland and Sweden.
Despite the change on Monday, electronic transactions can still be billed to the nearest cent.The government has estimated that the coins, which bear the image of Queen Elizabeth II and two maple leaves, cost about C$11m (£7m) each year to make.
The end of the penny has prompted charities around Canada to start penny drives, and some initiatives have been very successful.Toronto-based Free The Children has already collected 70m pennies, CBC News reports.That could provide a lifetime of clean drinking water to 28,000 people in developing countries, according to the NGO.But other organisations, such as Canadian Guide Dogs for the Blind, say they are worried the disappearance of the penny will make it harder to fundraise.The US Treasury has said the Obama administration has thought about making its one cent coins from a cheaper material - they are currently made of zinc.
I think thats kind of sad that Canada can’t pay for their pennies. for some people, like me,this would be an advantage.This would be an advantage because I don’t really like pennies, I would rather get my change in nickels, dimes, and quarters than in pennies, nickels, dimes, and quarters. But for other people this might be a slight disadvantage, because some businesses might slightly raise their prices. but overall i think this will be a good thing. I wish America would do this.
Make sure the majority of your summary is your own words. I hear the U.S. may also eliminate the penny too.
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