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Most Canadians want to eliminate penny

DON MILLS, Ontario, Aug. 13 (UPI) -- A majority of Canadians want to abolish the penny, a poll indicates, and experts say the Canadian economy would benefit if the government heeds the call.

A poll conducted by Ipsos Reid for canada.com showed 60 per cent of Canadians want to abolish the one-cent piece, a four-point increase over the last two years, Postmedia News reported Friday.

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Costs to manufacture the penny could be saved and, more importantly, it would put more money back into circulation, says currency analyst David Watt.

Watt says people hoard their pennies in jars or boxes. If the government incentivized the coins' return by giving cash for old pennies, that money might be spent or put into a bank account, the News reported.

What about the argument about retailers increasing their prices?

"It's a fearmongering argument," he said. "There may be some retailers that round up more often than round down, but I can't see it as a big aggregate issue."

The poll of 1,017 adults from Ipsos Reid's Canadian online panel was conducted June 10-14. The poll is said to have a margin of error of 3.1 percentage points, 19 times out of 20.

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