Should we make cents? Our northern neighbors in Canada no longer think so. They will stop minting new pennies next year on the theory the penny is now more of a nuisance than an item of transaction. “It costs the government 1.6 cents to produce each new penny,” Finance Minister Jim Flaherty explained as he presented Canada’s budget to its parliament on Thursday.
So how will people buy an item on sale for $9.99? People will be free to use the pennies now in circulation, but gradually, experts say, cash transactions will be rounded to the nearest five-cent increment. That was how it was done in New Zealand and Australia when they ditched their one-cent coins, and, despite some public fears, there was no uptick in inflation.
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