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In Canada, a penny is a coin worth one cent, or ​1100 of a dollar. According to the Royal Canadian Mint, the official national term of the coin is the "one-cent piece", but in practice the terms penny and cent predominate. Originally, "penny" referred to a two-cent coin. When the two-cent coin was discontinued, penny took over as the new one-cent coin's name. Penny was likely readily adopted because the previous coinage in Canada (up to 1858) was the British monetary system, where Canada used British pounds, shillings, and pence as coinage alongside U.S. decimal coins and Spanish milled dollars.

In Canadian French, the penny is often known by the loanword cent; in contrast with the heteronymous word meaning "hundred" (French: [sɑ̃] (About this soundlisten)), this keeps the English pronunciation [sɛnt] (About this soundlisten). Slang terms include cenne, cenne noire, or sou noir (black penny), although common Quebec French usage is sou.

Production of the penny ceased in May 2012,[1] and the Royal Canadian Mint ceased distribution of them as of February 4, 2013.[2] However, like all other discontinued currency in the Canadian monetary system, the coin remains legal tender.[3] Nevertheless, once distribution of the coin ceased, vendors were no longer expected to return pennies as change for cash purchases, and were encouraged to round purchases to the nearest five cents.[4] Non-cash transactions are still denominated to the cent.

There had been repeated debate about ceasing production of the penny because of the cost of producing it and a perceived lack of usefulness. In mid-2010 the Standing Senate Committee on National Finance began a study on the future of the one-cent coin.[14] On December 14, 2010, the Senate finance committee recommended[15] the penny be removed from circulation, arguing that a century of inflation had eroded the value and usefulness of the one-cent piece. A 2007 survey indicated that 37 percent of Canadians used pennies, but the government continued to produce about 816 million pennies per year, equal to 24 pennies per Canadian.[16] The Royal Canadian Mint had been forced to produce large numbers of pennies because they disappeared from circulation, as people hoarded these coins or simply avoided using them. In 2011 the Royal Canadian Mint had minted 1.1 billion pennies, more than doubling the 2010 production number of 486.2 million pennies.[17] In late 2010, finance committee members of the Canadian Senate estimated that the average Canadian had as many as 600 pennies hoarded away, taken out of circulation.[15]

On March 29, 2012, the federal government announced in its budget[18] that it would withdraw the penny from circulation in the fall of 2012. The budget announcement eliminating the penny cited the cost of producing it at 1.6 cents.[18] The final penny was minted at the RCM's Winnipeg, Manitoba plant on the morning of May 4, 2012.[19] Existing pennies will remain legal tender indefinitely;[20] however, pennies were withdrawn from circulation on February 4, 2013.There had been repeated debate about ceasing production of the penny because of the cost of producing it and a perceived lack of usefulness. In mid-2010 the Standing Senate Committee on National Finance began a study on the future of the one-cent coin.[14] On December 14, 2010, the Senate finance committee recommended[15] the penny be removed from circulation, arguing that a century of inflation had eroded the value and usefulness of the one-cent piece. A 2007 survey indicated that 37 percent of Canadians used pennies, but the government continued to produce about 816 million pennies per year, equal to 24 pennies per Canadian.[16] The Royal Canadian Mint had been forced to produce large numbers of pennies because they disappeared from circulation, as people hoarded these coins or simply avoided using them. In 2011 the Royal Canadian Mint had minted 1.1 billion pennies, more than doubling the 2010 production number of 486.2 million pennies.[17] In late 2010, finance committee members of the Canadian Senate estimated that the average Canadian had as many as 600 pennies hoarded away, taken out of circulation.[15]

On March 29, 2012, the federal government announced in its budget[18] that it would withdraw the penny from circulation in the fall of 2012. The budget announcement eliminating the penny cited the cost of producing it at 1.6 cents.[18] The final penny was minted at the RCM's Winnipeg

On March 29, 2012, the federal government announced in its budget[18] that it would withdraw the penny from circulation in the fall of 2012. The budget announcement eliminating the penny cited the cost of producing it at 1.6 cents.[18] The final penny was minted at the RCM's Winnipeg, Manitoba plant on the morning of May 4, 2012.[19] Existing pennies will remain legal tender indefinitely;[20] however, pennies were withdrawn from circulation on February 4, 2013.[21] Only pennies produced in 1982 or later are still legally "Circulation Coins".[22] The Currency Act says that "A payment in coins [...] is a legal tender for no more than [...] twenty-five cents if the denomination is one cent."[23]

On February 4, 2013, Google celebrated the beginning of the end for the Canadian penny with a Google Doodle.[24] On the same day the Canadian Mint began melting down the estimated 35 billion pennies that are in circulation.[25]

Cash transactions are now rounded to the nearest 5¢.[26] The rounding is not done on individual items but on the total bill of sale, with totals ending in 1, 2, 6, or 7 rounded down to 0 or 5, and totals ending in 3, 4, 8, or 9 rounded up.