The US government has decided to close the 100th of the dollar, ie Penny (St.). According to the Donald Trump administration, continuing this coin is not financially affordable. Saint is commonly referred to as a penny.
The US Treasury Department has announced that the production of new penny coins will be discontinued in early 2026. This decision has been taken in view of the production costs and limited use of the coin. The decision will save Rs 477 crore per year.
Savings of Rs 477 crore per year
Currently, the cost of production of a penny coin is about 3.7 cents (about ₹ 3.08), which is about four times the printed value. In 2024, the US Minton made 3.17 billion penny coins, which cost around $ 85 million (about ₹ 710 million). However, by shutting down this product, the government will save about $ 56 million (about ₹ 477 crore) every year.
What about existing coins?
Production of new penny coins will be stopped but the current penny coins in the currency will be legal and valid. Currently, about 114 billion penny coins are consumed in the United States.
Impact on cash transactions
Prices in cash transactions can be rounded up to 5 cents in cash transactions after the penny production is stopped. For example, it is done in countries like Canada and Australia. This will not affect digital transactions. The penny coin was first issued in 1793 and since 1909 it has seen the image of President Abraham Lincoln. Even though the economic importance of the coin decreases, it is an important part of American culture and history.
