Documents indicate debate on nickel’s future

Earlier this year, a Finance Department memo to senior officials examined the nickel’s purchasing power, usage and production costs.

Much of the April document, obtained by The Canadian Press under the Access to Information Act, was blacked out, including the “assessment” portion that likely discussed the coin’s future.

The uncensored portions of the memo point out the purchasing power of the nickel has eroded over time, relative both to prices and incomes.

The study found the nickel’s purchasing power has tumbled 40 per cent over the last 25 years.

And it notes all G-8 countries have a coin denomination equal to the Canadian nickel, but that New Zealand and South Africa have jettisoned their nickels over the past decade.

But one reason to keep the nickel around could be due to the fact that it’s still cost effective to mint them and it may even become profitable.

The Royal Canadian Mint doesn’t share production costs for any of its circulation coins but a spokesman says the cost of manufacturing a five-cent circulation coin remains well below its face value.

by The Canadian Press

Documents indicate debate on nickel’s future

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