The Treasury Department published non-binding guidance for businesses and consumers on handling various penny situations.
Details: The frequently asked questions cover the end of penny production, timelines, how businesses can handle certain situations, rounding, and more.
ICBA Advocacy: ICBA in October called on Treasury to issue guidance, noting that inventory management is a significant issue for community banks.
Background: President Donald Trump in February called for an end to minting pennies given the cost. The U.S. Mint last month struck the final circulating one-cent coin, marking the official end of the penny’s 232-year production run.
Recent Penny Actions: House Republicans last week asked the Federal Reserve to take a thoughtful approach to its role in recirculating pennies, emphasizing the need for clear legislative guidance to ensure fair and consistent cash practices.
ICBA Resources:
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A recent ICBA article spotlights how community bankers are responding to the federal government officially discontinuing production of new pennies.
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An ICBA blog post breaks down recent developments and ICBA’s efforts to gain clarity and address disruptions stemming from the end of penny production.
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ICBA Community features community banker discussions on processes and best practices related to the penny going away.
More Resources:
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A blog post from the Federal Reserve Bank of Atlanta examines possible rounding methods the United States could use when penny production is phased out.
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The Federal Reserve Board released FAQs on anticipated changes to penny ordering and deposits following the Treasury Department decision to end penny production.