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We got rid of the penny here in Canada a few years back. All prices are still marked to the 100th, but then the cashier either rounds up or down to the nearest five cents. You still end up with coins in your pocket but I've found that people will often round to the more convenient number as opposed to the correct one. I think the U.S. needs to finally get on board with this. My girlfriend suggested that we should just start copper plating nickels instead, that way the impact of the transition becomes easier on the American psyche. :P