News in Brief

End of Penny Production Confirmed

As CMN went to press, the US Treasury officially confirmed the end of penny production, following the Trump administration’s order to cease minting the coins earlier this year (see CMN February).

The Department will stop issuing new pennies into circulation by early next year, reports the Wall Street Journal.

‘The Treasury has made its final order of penny blanks this month and the United States Mint will continue to manufacture pennies while an inventory of penny blanks exists’, a Treasury spokesperson confirmed.

The Mint has estimated an immediate annual saving of $56 million in reduced material costs once production ends. It currently costs 3.69 cents to produce each circulating penny, with costs jumping from 2.7 times the face value of the coin in 2022 and creeping steadily closer to costing four times as much as the penny is worth. (A more detailed review of the implications of this decision will feature in the June issue).