The American treasury will hit its last cent early next year, with a termination of a 233-year-old production run, but the copper-colored coin will rattle for years in cash loading, because retailers gradually take transactions to the nearest nickel.
What happened: There are around 114 billion cents in circulation, stacked together, they would make a metal cube 13 floors long. The treasury says that stopping a penny production can still save $ 56 million a year, even after we have used more Ninkels, because most of these pennies are simply unused in pots and loading.
Each coin of one cent now costs 3.69 cents to produce its nominal value to triple and taxpayers with a loss of $ 85 million in tax 2024, according to the annual report of the US Mint. President Donald Trump called the costs “wasting” when he ordered the Minister of Treasury Scott Betting To “tear out the waste”, and two -part accounts in both rooms quickly inspected the move.
What happens to the register?
Retailers can continue to accept money because they remain a legal means of payment, but as soon as the bank stocks decrease, many stores will close the totals around or down on the nearest five cents. “The primary goal of the retailers is to serve customers and make this transition as seamless as possible,” said Dylan Jeon from the National retail federation in a statement shared With CNN. Convenience stores, which treat 32 million cash purchases a day, expect in the beginning “no real change”, noted, noted Jeff Lenard from the National Association of Convenience Stores, According to the report.
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What have other countries done?
Canada stopped his cent in 2012. Cash has now been completed, but the currency “retains its value for an indefinite period,” says the Ministry of Finance of Ottawa. In Australia, 1 and 2 cent coins disappeared in 1992 and the prices have since been completed at 5 cents. Other countries, from new Zeeland to Slovakia, have taken similar steps without noticeable inflatoid bumps.
Why it matters: By one report By ABC, Pro-Penny-Lobby Americans claim that the killing of the penny just shifts to the nickel, which now costs almost 14 cents to make. Yet Treasury -analysts say that the nickel spike is exaggerated and the fall of the Penny in general a positive balance nets. Consumer groups are also concerned about ‘completing taxes’, but studies in Canada did not find a meaningful price.
Treasury’s plan phases out blaege orders this summer and stops new coin circulation at the beginning of 2026. Electronic and map payments will still settle up to the exact cent. For coin collectors – and speculators – the curtain call of the Penny has already led to price peaks in selected mint years.
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