US Mint begs public for spare change as coronavirus pandemic leaves a shortage in coin supply
The US is in the middle of a pandemic which has affected more than 4.3 million people and killed nearly 150,000. The economy has been severely paralyzed as businesses have come to a screeching halt in terms of sales, resulting in loss of jobs in massive numbers. However, besides the health and economy issues, the US has also faced another big crisis and there is a nationwide shortage of coins, so much so, that even the US Mint has appealed to the common people for help.
The problem has become big since cash-starved people in the country are now using credit cards to make cashless payments, resulting in a shortage of dimes, nickels, pennies, etc. This has left an adverse effect on the functioning of banks, retailers, and those who use cash to make payments.
'Adequate coins there but circulation slowed down'
The Mint, which is in charge of producing new money, is working overtime to address the issue and last week, it asked people to pay with exact change and find other ways to return coins so that the circulation remains strong. “We ask that the American public start spending their coins, depositing them, or exchanging them for currency at financial institutions or taking them to a coin redemption kiosk,” the Mint said in a statement. “The coin supply problem can be solved with each of us doing our part.”
“Simply put, there is an adequate amount of coins in the economy, but the slowed pace of circulation has meant that sufficient quantities of coins are sometimes not readily available where needed. You may be experiencing this in your local communities,” it added.
Last month, Federal Reserve Chairman Jerome Powell spoke about the problem during a virtual hearing with the House Financial Services Committee, CNN reported. He said that since more people are spending days at home and online shopping is more the fashion of the day, the normal flow of coins has been disrupted. “The places where you go to give your coins, and get credit at the store and get cash ... those have not been working. Stores have been closed. The whole system has kind of come to a stop,” he said.
Businesses are also doing their part to combat the problem. A Chick-fil-A in Virginia planned to give out on Wednesday, July 29, free vouchers to anyone who shows up to trade in coins for cash, Daily News reported. Many 7-Eleven convenience stores were also offering Free Slurpees in exchange of $5 in change. Even a bank is paying people for bringing in spare change, CNN added.
The Mint also slowed down coin production briefly to implement Covid-19 safety measures for the workers though it claimed to have resumed regular production of the metal money around the middle of June. In response, the Fed convened a US Coin Task Force to work on restoring the coin supply chain. And in the meantime, companies have come with ways to manage — some retailers have warned customers they may not be able to receive change in coins and one bank is even paying people to bring in their spare change.
More than 16.7 million people have been affected by the coronavirus worldwide while over 660,000 have died.