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Why did the US stop minting pennies?
The US stopped minting pennies in February 2025 after President Trump announced that the cost of producing each penny (about 3.7 cents) was too high compared to its face value. This decision aimed to cut costs but has led to a nationwide coin shortage as existing pennies become scarce.
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How are retailers handling the penny shortage?
Retailers like Giant Eagle and Sheetz are hosting penny exchange events, encouraging customers to trade in their pennies for store credit or other benefits. Many stores are also rounding prices to avoid using pennies, which can cause confusion and legal issues.
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What legal or financial issues are caused by coin shortages?
The shortage has led to legal challenges around rounding prices and handling cash transactions. Businesses face increased costs due to the need for alternative payment methods and potential disputes over pricing adjustments, especially during busy shopping seasons.
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Will this penny shortage affect holiday shopping and prices?
Yes, the shortage could impact holiday shopping by causing delays in cash transactions and prompting stores to round prices, which might affect consumer costs. Retailers are preparing for these changes to ensure smooth holiday sales despite the coin scarcity.
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Is the penny shortage a temporary problem?
The shortage is expected to last until new coins are minted and distributed, which could take several months. The ongoing legislative efforts, like the proposed Common Cents Act, aim to address the issue, but full resolution may take time.