• The U.S. Mint has struck its final pennies after more than 230 years of production.
• Production costs have increased, making each penny cost nearly four cents to produce.
• The decision is estimated to save the U.S. Mint approximately $56 million annually.
• Retailers face challenges adjusting prices as pennies are phased out.
• About 300 billion pennies will remain in circulation despite the end of new production.

The U.S. Mint in Philadelphia has completed the production of its final 1-cent coins, marking the end of an era for the American penny which has been in circulation since 1793. Treasury officials stated that the decision to cease production is based on rising costs, as each penny now costs nearly four cents to make, more than its face value. This move is expected to save the U.S. Mint about $56 million annually, according to Reuters and BBC.

During the final press event at the mint, U.S. Treasurer Brandon Beach emphasized the significance of this step, stating it will help "save the taxpayers” and referring to the penny as increasingly irrelevant in today's economy. The last coins will be auctioned, but all existing pennies will remain legal tender. Despite this, many consumers find themselves hoarding them in jars, as they are rarely used for transactions, reports Reuters and India Times.

While the penny has a rich history in American culture, its elimination has already created challenges for retailers and consumers alike. Some businesses are adjusting prices by rounding them to the nearest nickel, which could lead to increased costs for customers. It has been estimated that this rounding mechanism could collectively cost consumers around $6 million annually. However, some states have laws requiring exact change, making this transition more complicated, as noted by SFGate and India Times.

The decision has drawn comparisons to similar moves in other countries, such as Canada and Australia, which phased out their lowest-value coins with clear guidance for businesses. Critics argue that in the U.S., the process lacks a structured plan, leading to confusion and a chaotic experience for retailers and consumers, according to BBC and India Times.