The Canadian Penny’s Demise
In the Economic Action Plan 2012, the Government of Canada announced it would phase out the penny from Canada's coinage system. 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.”
A transition date of February 4, 2013 was set after which the Royal Canadian Mint would no longer distribute pennies. Instead, the Royal Canadian would start collecting one cent coins for melting and recycling of the metal content. Six billion pennies are expected to be surrendered by Canadians over the next six years.
On February 4, 2013, businesses were encouraged to begin rounding cash transactions. For those interested in the Rounding Guidelines, they are available at the Royal Canadian Mint web site.
There are also pages dedicated to frequently asked questions for Consumers, Businesses and Charities.
A History of the Penny page is likewise available for those interested in the coin's history. At present, the Currency Museum of the Bank of Canada has a small exhibit on the coin. According to The Ottawa Citizen, the CENTimental Journey exhibit chronicles the history of the penny from 17th-century France to the present day. The exhibit showcases different pennies used between 1693 and 2012. It also prominently features the last penny struck by Finance Minister Jim Flaherty on May 4, 2012. The exhibit runs from January 15 to July 2, 2013.
For books about Canadian money in general, check out the following three titles at the Toronto Public Library:
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| Canadian Coin Digest 2nd Ed. |
Canadian Dollar Chaos | Money and Exchange in Canada to 1900 |
The Bank of Canada has an excellent publication on their web site entitled A History of the Canadian Dollar by James Powell.
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