Obama Administration orders study of penny, nickel production

It costs more to make a penny than the penny is worth, likewise for the nickel, government reports say.

To that end, the Obama Administration has ordered a review of the nation’s currency in 2015, particularly the use and production of coins, according to MarketWatch.

The fiscal 2015 budget, released on Tuesday, points out that the coins’ manufacturing and circulation have not changed in decades and that the Treasury Department has been reviewing the coins’ production. Obama has proposed similar reviews in the past but the measures stalled despite not being partisan points of contention.

The budget does not include a specific cost savings figure for the potential changes but it identifies the rise of electronic commerce as a reason to review the coins’ makeup and distribution. Last year’s budget had pegged the cost of manufacturing a penny at two cents and the price of a nickel at 11 cents.

Past attempts to change penny and nickel production have faced resistance from interest groups, such as the Coin Laundry Association, which warned its small-business owner members would be hurt.

Agencies/Canadajournal