Canada ends distribution of penny coin

  • The Canadian penny is to be withdrawn from circulation because production costs have outstripped its monetary value.

    It was announced on Monday that the Royal Canadian Mint would no longer distribute the coin to financial institutions though it would remain legal tender.

    The government has told shop owners to round out prices to the nearest nickel for transactions.

    According to government estimates, the coins, which bear the image of Queen Elizabeth II and two maple leaves, cost around $11 million a year to produce.

    Several countries such as New Zealand, Australia, the Netherlands, Finland and Sweden have phased out the penny in recent years.

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