Jan 31, 2013 / 5:00 am
Beginning Monday, Feb. 4, the Royal Canadian Mint will no longer distribute pennies to financial institutions or businesses.
It's part of the governments phasing out of the penny.
The federal government announced last year it would begin to phase out the penny due to excessive and rising cost of production relative to face value, the increased accumulation of pennies by Canadians in their households, environmental considerations, and the significant handling costs the penny imposes on retailers, financial institutions and the economy in general.
It is believed taxpayers will save about $11M a year through phasing out of the penny.
The department of finance is recommending businesses begin rounding up/rounding down all cash transactions Feb. 4 to coincide with the date the penny will no longer be distributed.
Some businesses have already begun the practice while others, including Tim Hortons have begun notifying customers they will be implementing the practice of 'rounding' starting Feb. 4.
As pennies exit circulation, cash payments or transactions only will need to be rounded, either up or down, to the nearest five-cent increment. The Government of Canada will be adopting a rounding guideline that has been used successfully by other countries for its cash transactions with the public.
Under this guideline, when pennies are not available, cash transactions will be rounded in a fair and transparent manner, as illustrated below:
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