Canada penny drops in federal budget as Jim Flaherty signals end of one cent coin
The penny coin, loved by some but an annoyance to many, will be withdrawn from circulation this year because it costs too much to make and is a pecuniary pest.
"The penny is a currency without any currency in Canada," Finance Minister Jim Flaherty said Thursday.
Ottawa said the penny retained only one twentieth of its original purchasing power. It costs 1.6 Canadian cents to produce each one cent coin and stamping out the penny will save around C$11 million ($11 million) a year.