Treasury Today, August 2025
The US Treasury Department intends to stop producing the one cent coin, after President Donald Trump complained that the “penny” costs too much to produce. Corporate treasurers in retail and other cash handling sectors are urged to ask their bankers how they should prepare. Corporate treasurers in the United States, especially at retailers that engage in frequent small-cash transactions, have yet another issue to ask their banks about. The US Treasury Department intends to stop producing one cent coins, and officials are discussing potential alternatives for the five cent coin.
While not eliminating the smallest coins entirely, the end of new production has the potential to shift some pricing strategies. It raises concerns about the flow of bulk coin between company coffers and the bank. Corporate treasurers should begin planning now, according to cash management experts. It costs 3.7 cents for the government to mint a one cent coin, commonly known as the “penny.” Producing the five cent “nickel” costs more than 13 cents.
