While many products have been in demand during the coronavirus, no one really anticipated a deficit of pocket change. According to the Federal Reserve, the closure of businesses and banks have significantly disrupted the supply chain and normal circulation patterns of U.S. coins. While there is an adequate overall amount of coins in the economy, the slowed pace of circulation has reduced available inventories in some areas of the country. Some retailers are asking customers to use exact change or to pay with credit cards, as banks struggle to locate spare coins.
Social distancing and other safety measures have had an effect on the production of new money. The fact that many consumers are spending less physical cash these past few months hasn’t helped the situation. The movement of coins through our economy is not what it once was. Since the pace has slowed, sufficient quantities of coins are not readily available where needed. With many establishments like retail shops, arcade areas, transit authorities, and laundromats being closed or only being open for limited hours, the normal flow of coin circulation has diminished.
To do our part when possible, consider paying for things with exact change and returning spare change into circulation. Consider taking your coins to a redemption kiosk. Being safe is paramount when helping to get coins recirculating. Please be sure to follow all safety and health guidelines and rules when visiting retailers, small businesses, grocery stores, and financial institutions.
The U.S. Mint has been operating at full production capacity since mid-June, producing almost 1.65 billion coins per month for the remainder of the year. In contrast, 2019 the Mint produced an average of 1 billion coins per month. Watch video of penny production at U.S. Mint in Denver.
To get coin circulation moving again, in July, the Federal Reserve formed a U.S. Coin Task Force to identify, implement and promote actions to reduce the consequence and duration of COVID-19.
The Federal Reserve is confident that the coin inventory issues will recover once the economy opens more broadly, and the coin supply chains return to normal circulation patterns.
In the meantime, doing our part to circulate coins safely, makes cents.
