The federal finance department says it has no plans to discontinue the nickel, although it did consider it.
An internal federal analysis shows the government studied the pros and cons of the nickel, years after pulling the penny from circulation in 2013.
The five cent coin’s purchasing power, usage and production costs were all looked at according to a memo obtained through an access to information request.
The memo pointed out there are virtually no goods or services that can be purchased for a nickel, with its purchasing power eroding over the last 25 years.
Still, the Royal Canadian Mint says the cost of making the nickel is still well below its face value.
But some observers think the nickel will go the way of the penny within five years.
All G8 countries have a coin denomination equal to the Canadian nickel but New Zealand and South Africa have scrapped theres.