Tag: Penny Posts

The Great Canadian Penny Massacre


Yesterday the Canadian government alluded to a plan to completely remove the penny from circulation in the next 12 months. Their main motivation for this change is cost – the currently cost of a penny is around 1.5 cents, but the value of the coin is only 1.0 cent. So, the government would like to get rid of the penny. Now what does that mean for the average person? To be honest, not a whole lot in my opinion. First, retailers are supposed to round the final values to the nearest 5 cent value. If the item is less than 2.5 cents away from a lower price, retailers are supposed to round down. If it’s less than 2.5 cents to a higher value, retailers are allowed to round up. In theory this sum of all this rounding errors should equal zero, which means no net price change. Second, it only […]