The Canadian government will take its penny out of circulation by the end of the year, saying it costs much more to produce them than they’re worth.
Reuters reported the Canadian mint will stop sending coins to financial institutions later this year. Government officials estimate removing the penny will save the country $11 million Canadian a year.
Government officials expect the penny to leave circulation slowly, and as it does, prices will be rounded to the nearest five cents.
It currently costs 1.6 Canadian cents to produce each one-cent coin, government officials said.
A Canadian lawmaker who’s been a longtime opponent of the penny said there are more than 30 billion pennies in circulation.
The U.S. Treasury Department said earlier this month that it costs 2.4 cents to make a U.S. penny and 11.2 cents to make a nickel. The treasury plans to cut those costs by minting the coins out of cheaper materials.