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International Precedents

How Other Countries Did It

Lessons from nations that successfully eliminated their lowest-denomination coins

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International Precedent

Multiple nations have successfully transitioned away from their lowest-denomination coins. Their experiences offer valuable lessons for the U.S.

Sources: International Coin Withdrawal Records, CBC News

🇨🇦

Canada

2013
ELIMINATED
1-cent coin (penny)
APPROACH
Symmetrical rounding to nearest 5¢
RESULT
Smooth transition, no price increases
KEY LESSON
Clear government communication worked
🇦🇺

Australia

1992
ELIMINATED
1-cent and 2-cent coins
APPROACH
Rounding cash transactions
RESULT
Successful, no consumer complaints after adjustment
KEY LESSON
Removing multiple denominations at once
🇳🇿

New Zealand

1990, 2006
ELIMINATED
1-cent, 2-cent, then 5-cent coins
APPROACH
Phased elimination over time
RESULT
Now rounds to nearest 10¢
KEY LESSON
Can go further than just pennies
🇸🇪

Sweden

1972, 2010
ELIMINATED
Multiple small denominations
APPROACH
Pioneered "Swedish rounding"
RESULT
The model others follow
KEY LESSON
Origin of symmetrical rounding

Common Success Factors

Every successful transition shared these key elements.

Clear government guidance before implementation
Symmetrical rounding (not always in business's favor)
Cash-only application (electronic exact)
Public education campaigns
Gradual phase-in period

Research Findings

Academic and government studies consistently show positive outcomes.

No measurable price increases in any country (Bank of Canada, 2014)

Consumer spending patterns unchanged

Businesses saved money on coin handling

Environmental benefits (less coin production)

Key Finding
“The inflationary effect of eliminating the penny would be small or non-existent.”

— Bank of Canada study, cited in Government of Canada Budget 2012

What the U.S. Can Learn

Applying international experience to the American context.

Follow Treasury's symmetrical rounding guidance
States can lead where federal law lags
Business-first adoption works
Clear signage prevents confusion
The transition will complete naturally

Timeline Comparison

How long did other countries take from announcement to implementation?

COUNTRY
ANNOUNCEMENT
IMPLEMENTATION
DURATION
🇨🇦Canada
2012
2013
~1 year
🇦🇺Australia
1990
1992
~2 years
🇺🇸U.S.
2025
?
TBD
U.S. Status: Production ended November 2025 via Treasury executive action. No federal rounding mandate exists yet. Full transition timeline remains uncertain pending potential Congressional action.
Global Track Record
30+

Countries have successfully eliminated their lowest-denomination coins with no significant economic disruption

See How U.S. States Are Responding

Track which states are adopting rounding guidelines and which are holding back.

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