US businesses go penniless

New Delhi, Nov 1: The United States is facing a shortage of one-cent coins after the Trump administration ended their production earlier this year, the BBC reported.

The US Mint officially stopped minting pennies in May, and shortages appeared months earlier than expected.

According to the report, many businesses across the country are now rounding cash transactions to the nearest five cents, as banks can no longer supply pennies. Some major retail chains have opted to round prices down to avoid customer complaints, leading to financial losses across outlets. The discontinuation of the penny, which has been in circulation since 1793, was justified on grounds of high production costs. It costs nearly four cents to produce a single penny. However, experts cited by the BBC warned that the decision could disproportionately affect low-income Americans who rely on cash payments and may increase costs if more nickels are produced, since nickels cost nearly 14 cents to mint. BBC noted that some stores are encouraging customers to pay in exact change or to bring in any spare pennies they may have, as the US transitions to a largely penny-free economy.