US Penny Shortages Continue

Production of the humble penny (one cent coin), long a staple of US American currency, officially ceased last year. This seems to have created an unexpected set of challenges for businesses, banks, and consumers across the United States. While pennies remain legal tender and existing coins will continue to circulate, access to them has already become an issue, prompting retailers to adopt new practices and the US Treasury to issue guidance.

The end of one cent coin production was largely motivated by economics – the cost of producing a penny had reached roughly 3.69 cents, meaning the government was losing money on every coin minted. While the decision may make sense from a fiscal perspective, it has triggered several logistical concerns.