What Are Canadian Pennies Called? Understanding One-Cent Coins

Learn what Canadian pennies are called and the impacts of their discontinuation in 2013.

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Canadian pennies are called 'one-cent coins' or simply 'pennies'. Although pennies were a staple in Canadian currency, they were discontinued in 2013 owing to production costs exceeding their face value. Today, due to the phasing out of pennies, cash transactions are typically rounded to the nearest five cents, while electronic transactions remain unaffected.

FAQs & Answers

  1. What is a Canadian penny? A Canadian penny is a one-cent coin that featured a maple leaf on one side and the image of Queen Elizabeth II on the other. It was commonly used in Canada until its discontinuation in 2013.
  2. Why were Canadian pennies discontinued? Canadian pennies were discontinued in 2013 because the production costs exceeded their face value, leading to financial inefficiencies and the need to simplify cash transactions.
  3. How are cash transactions handled without pennies in Canada? After the discontinuation of pennies, cash transactions in Canada are rounded to the nearest five cents to facilitate easier payments, while electronic transactions are processed as usual without rounding.
  4. What materials were Canadian pennies made from? Canadian pennies were initially made from pure copper, but later versions incorporated a mix of copper-coated zinc before the coin was phased out completely.