Canada’s last penny minted

by Rob Benneian

Canadian coin collectors will mark Feb. 4 as an historic day with Canada’s last penny having been minted.

The Government of Canada, in partnership with the Royal Canadian Mint, has permanently stopped production of the one-cent piece that has been a fixture in Canadian currency since 1858.

A 2007 Desjardins economic study recommended the retirement of the penny “as quickly as possible.” The Senate recommended the removal of the penny in 2010 following a study of the copper-covered steel coin earlier that year.

“After producing the penny for Canada since the Mint opened in 1908, the last distribution of this iconic coin is a sentimental turning point in our history,” said Ian Bennett, president and CEO of the Royal Canadian Mint. “The Mint continues to adapt to the changing needs of the marketplace and will fully support the Government of Canada and key stakeholders to ensure the successful phase out of the penny.”

The penny phase out is part of Canada’s Economic Action Plan 2012 and the government expects it will save taxpayers approximately $11 million per year. This is due in part to the penny costing 1.6 cents to produce, or 60 per cent more than its face value.

However, those savings won’t be immediately apparent for local financial institutions. A local bank employee, who spoke under the condition of anonymity due to company policy, said her bank would be taking a loss in 2013 due to the phase out.

“Right now, the banks will be taking a loss of about $300,000 on this change over,” she said.

Banks will no longer be able to order pennies and as such many retail stores will stop including them in customer change. The government has established “fair and transparent” guidelines on how cash transactions will be handled. Customers will be given their change rounded up or down to the nearest five-cent increment.

The Department of Finance has launched a website which Minister of Finance Jim Flaherty said will “provide clear information on how cash payments will be treated when pennies are not available.”

Listen to the radio version of this story:

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