An internal federal document shows the government has studied the pros and cons of the nickel — but insists it has no plans to force the five-cent coin into retirement, as it did the penny.
When the Royal Canadian Mint yanked the penny from circulation in 2013, the nickel became the country's smallest circulating denomination of pocket change.
Since then, many people have expected it would only be a matter of time before Ottawa also eliminated the nickel.
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 was blacked out, including the "assessment" portion that likely discussed the coin's future.
The study found the nickel's purchasing power has tumbled 40% over the last 25 years. In 1914, the nickel was worth more than a loonie in today's terms.
The nickel entered circulation in 1858, when the Royal Mint in Britain produced them for the province of Canada. The Royal Canadian Mint started pumping out five-cent pieces in 1908 — and has since made 5.55 billion of them.
The memo says all G8 countries have a coin denomination equal to the Canadian nickel, but notes that New Zealand and South Africa have jettisoned their nickels over the past decade.
Even so, there are no plans on the table to remove the coin, and one reason to keep the nickel around could be due to the fact it's still cost-effective to mint them — and may even become profitable.
