Re-circulating the currency in larger denominations is the same as buying them back. In order for them to take 100 pennies out of circulation, they must compensate the owner with a dollar bill/coin (i.e. a larger denomination) or a dollar of bank credit.
It's a funny sort of "buying" when you can print money. Be careful not to confuse the value of a coin with value of the metal the physical token contains.
I think so... but the profit is a lucky bonus that happens because the coins we decided we don't want any more happen to have some intrinsic value. They would need to take the pennies back even if it was at a "loss" in terms of manufacturing cost vs recycled value.
No net currency value has taken place. Party A gives $1 in the form of 100 1c coins, Party B gives $1 in the form of 1 $1 coin.
It's the same as when you give change to a stranger on the street - exchange two fives for a ten, and you're no better or worse off financially. You haven't bought anything, just exchanged for a more convenient set of tokens.
