Federal government orders study of penny, nickel production

It costs more to make a penny compared to penny may be worth, likewise for that nickel, government reports say.

To that end, the Obama Administration has ordered a review of the nation’s currency in 2019, particularly the use and manufacture of coins, according to MarketWatch.

The fiscal 2019 budget, released , points out the coins’ manufacturing and circulation haven’t changed in decades and that the Treasury Department has been reviewing the coins’ production. Obama has proposed similar reviews previously but the measures stalled despite not partisan points of contention.

The budget doesn’t include a specific cost savings figure for that potential changes however it identifies the rise of electronic commerce like a reason to review the coins’ makeup and distribution. Last year’s budget had pegged the price of manufacturing anything at two cents and also the price of a nickel at 11 cents.

Past tries 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 could be hurt.