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Why are pennies disappearing from US circulation?
The US stopped minting new pennies in February 2025 after President Trump announced the decision, citing high production costs. Each penny costs about 3.7 cents to produce, leading to significant expenses for the government. As a result, many pennies are no longer being circulated, causing shortages in banks and stores nationwide.
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How are retailers and banks adjusting to the penny shortage?
Retailers and banks are adapting by rounding cash transactions to the nearest five cents and holding special coin exchange events. Some stores are implementing Penny Exchange Days to help customers trade in their coins, while others are reducing cash transactions altogether, encouraging digital payments to avoid the coin shortage.
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What does the end of penny production mean for everyday shopping?
With fewer pennies in circulation, cash transactions are increasingly being rounded up or down, which can affect small purchases. Some stores are also closing or reducing hours due to coin shortages, and consumers may notice fewer coins in their change. Overall, shopping is becoming more streamlined but also slightly less precise in cash dealings.
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Will cash transactions become more rounded or simplified?
Yes, as pennies become scarce, cash transactions are likely to be rounded to the nearest five cents. This simplifies checkout processes and reduces the need for small coins, but it may also lead to minor changes in how much consumers pay for items, especially in cash-only transactions.
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Are there any legal or economic risks associated with the penny phaseout?
Some sources highlight concerns about legal and operational risks, including the potential for unfair rounding practices and economic strain on lower-income groups. The government and industry are working to manage these issues, but ongoing guidance and regulation are needed to ensure fairness and stability during this transition.
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What can consumers do to prepare for the penny disappearance?
Consumers are encouraged to use digital payment methods where possible, exchange their coins at banks or stores, and be aware that cash transactions may be rounded. Keeping a small stash of coins might also be helpful for small purchases until the transition stabilizes.