United States Experiencing Coin Currency Shortage Due To The Coronavirus Pandemic

In the early stages of the coronavirus frenzy, hand sanitizer, toilet paper, and disinfectant wipes were the first items to rapidly disappear from shelves. As those items make a slow comeback, now coins are the latest element to be nearing extinction during the pandemic.

This shortage is particularly prevalent in Tampa, Florida, where several businesses are displaying signs alerting shoppers that there is a shortage in coin currency, which is quietly sweeping the nation. Many stores are asking shoppers to use exact change, credit cards, or other non-cash payments.

“Due to the national coin shortage, exact change, whenever possible, is appreciated!” one sign posted on the door of a South Tampa Dollar Tree.

These warnings are in lieu of the Federal Reserve announcement last month that “the Covid-19 pandemic has significantly disrupted the supply chain and normal circulation patterns for U.S. coin.”

As many businesses shut down and American’s were subjected to stay at home orders, the flow of coins through the economy “kind of stopped,” Federal Reserve Chairman Jerome Powell revealed. They have rationed coin supplies to banks across the country.

“The U.S. Mint’s production of coins also decreased due to measures put in place to protect its employees,” the Federal Reserve added. Despite the shortage, the Reserve is confident that “the coin inventory issues will resolve” as the economy continues to reopen, and the coin supply chain returns to its normal circulation patterns.

Coin-cashing machines are also being used less frequently. The practice of people taking rolled coin into banks to exchange for paper cash slowed tremendously during the shutdown.

American consumers pay cash in more than a third of all in-person transactions, according to the National Association of Convenience Stores. Nearly half the time, consumers use cash for transactions under $10. Lower-income consumers, described as those who make less than $25,000 a year, use cash 43 percent of the time, the association revealed.

According to NACS spokesman Jeff Lenard, several areas have reported “a real challenge” from the coin shortage while others are not as affected.

At Goodwill stores, the head of finance was aware of the shortage early on and made sure they had coins on hand, said Chris Ward, director of marketing for Goodwill Industries-Suncoast. Like many nonprofits, Goodwill asks shoppers if they would like to round up their purchase amount to the next dollar instead of taking their change in an effort to support Goodwill’s services.

Another business owner, Karine Fort, who owns Samaria Cafe in downtown Tampa said, “I’m not worried about that. She revealed that her customers pay more with credit cards, and “we have less and less cash.”