The End of the Penny Era: U.S. to Halt Production

The U.S. Treasury is set to cease minting pennies due to high production costs, aligning with countries like Canada and Australia. The decision, spearheaded by President Trump, could save millions annually and necessitates price rounding. Congress has the final say on the penny's future.

The U.S. Treasury Department has announced plans to stop minting pennies, citing the high cost of production as the main factor. Secretary Scott Bessent and Treasurer Brandon Beach will visit the Philadelphia Mint to oversee the last penny production run, a decision backed by President Donald Trump.

Currently, the production cost of a penny stands at nearly four cents. This inefficiency has prompted many businesses to round cash transactions and embrace electronic payments. By eliminating penny production, the U.S. Treasury expects to save $56 million annually.

While the penny will remain legal tender, with billions already in circulation, its production is becoming a financial burden. The ultimate decision on the penny's fate rests with Congress, as the authority to coin money is constitutionally assigned to them.

(With inputs from agencies.)