Federal Reserve Admits There Is A Coin Shortage

By Mark Bennett, Special Correspondent for Worthy News

(Worthy News) – There was the notice on the door at Lowes in Houston, Texas:

“Attention Customers: The US is currently experiencing a coin shortage. Please use correct change or other form of tender if possible. We apologize for any inconvenience this may cause.”

So, what happened?

The Federal Reserve announced on June 11th that COVID-19 had caused a disruption in the normal flow and distribution of circulation of US coinage. The following week, Jerome Powell, the head of the Federal Reserve, spoke before the US House Committee of Financial Services. He informed the members that the partial shutdown had created a stoppage of the flow of coins in our economy. Consequently, some retailers are asking customers to use exact change. Mr. Powell also shared that he believes the condition will be only temporary because the economy is opening back up.

Admittedly, customers can see that banks and businesses have altered or changed the way they operate. In fact, some are not even accepting cash at all. And so there are fewer coins reaching the public. But the demand in coins varies across different regions of the US. It is primarily pennies and other low-denomination coins that have been growing at a significant pace over the past several months. This sudden surge in demand for coins has resulted in low penny inventories at some commercial banks, financial institutions, and Federal Reserve offices.

Part of the reason, also, has to do with the fact that the US Mint cut its production of coins as part of a protective measure for its workers, something most people didn’t even consider. But add to that the fact that the normal flow of commerce has been dramatically cut back — and more people are purchasing online, combined with the fact that fewer people than ever are actually buying things in-person, which necessitates physical money changing hands.

Now that businesses are quickly reopening, banks are finding that the demand for small change is outstripping the available supply. According to Yahaira Garcia-Perez, Central Valley spokesperson for Wells Fargo, “We are actively managing our coin inventory and working with customers to meet their coin needs after the Federal Reserve put limitations on coin deliveries to all financial institutions nationwide.” The shortage was made worse after the U.S. Mint decreased the production of coins — really all currency — as it worked to protect its employees from COVID-19.

So how can coin hoarders help their country in its time of need? Jerome Powell suggested all of us can help by cashing in their spare change for more of that “folding money,”

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