CANADA TO ELIMINATE THE CENT

It's the end of the line for Canada's humble penny.

The government has decided our lowest denomination coin is more trouble than it's worth, so the Royal Canadian Mint will stop distributing the penny this fall.

"It's a currency without currency," Finance Minister Jim Flaherty said Thursday.

In his budget speech, he said the only surprise is that the penny survived for so long.

"Pennies take up too much space on our dressers at home. They take up far too much time for small businesses trying to grow and create jobs," he said in prepared remarks.

"It costs taxpayers a penny-and-a-half every time we make one. We will, therefore, stop making them."

Cash transactions will soon be rounded to the nearest five-cent increment. So if a coffee costs $1.27, it will be rounded down to $1.25. If it's $1.28, the final cost will be bumped up to $1.30.

Round down: cash transactions that end in one, two, six or seven cents.

Round up: Cash transactions that end in three, four, eight or nine cents.

All cash transactions will be rounded on the final bill of sale, after taxes have been added. But transactions involving debit or credit cards, or cheques, will still be done to the cent.

So if you pay for that $1.27 coffee with a debit card, it won't be rounded to the nearest nickel.

To read the complete article, see: Gov't scraps penny, a 'currency without currency' (www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20120329/
budget-spending-cuts-pennies-120329/20120329?hub=BritishColumbiaHome)

Here's another article: Now the Canadian penny's days are numbered, is the nickel next? (news.nationalpost.com/2012/03/29/now-the-canadian-pennys
-days-are-numbered-is-the-nickel-next/)

Wayne Homren, Editor

	NBS (coinbooks.org) Web