Penny is scrapped in Canadian budget


Click to follow
The Independent US

Canada is to scrap its pennies because they cost more to produce than the coins are worth.

As part of a $5.2bn (£3.2bn) cut in federal spending in the Conservatives' first budget, the Royal Canadian Mint will stop producing the 1 cent coins this autumn.

The cost of minting a penny has risen to 1.6 cents or $11m a year, while its purchasing power has fallen to a 20th of its original value.