PHOENIX — In June, Federal Reserve chairman Jerome Powell said the flow of coins through the US economy has "kind of stopped," and now Arizona banks are asking consumers to help with the national coin shortage.
The Arizona Bankers Association says Arizona banks are asking consumers to deposit their spare change at their local bank or coin-cashing machines as the pandemic-related shutdowns has created a coin shortage.
The rate of coin circulation around the U.S. halted significantly with business closures in most states due to the coronavirus pandemic.
“In the beginning of 2020, more than 4 billion coins were deposited—or recirculated—each month,” Paul Hickman, CEO & President of the Arizona Bankers Association, said in a release. “Those numbers dropped to less than 2 billion beginning in April.”
Businesses are and have been reopening, which means that merchants need to stock coins, increasing demand in coins. But, most coins have remained with consumers during this time.
Recirculated coins represent more than 80% of the supply, with the remaining amount being new coins produced by the Mint, according to the ABA.
The good news is this shortage should be short-lived, as the Mint has resumed its normal production. However, the shortage will be felt until the economy can ramp back up and more coins can pass from consumers to every day businesses.
