Coins aren't circulating normally, and it's causing major problems. Here's how to help!
The COVID-19 pandemic continues to have unforeseen consequences, one being coin circulation.
It's the pandemic consequence that doesn't make cents!
We thought we'd be past this now that we are in August 2021, but here we are, yet again.
The Federal Reserve explains, "There is currently an adequate overall amount of coins in the economy. But business and bank closures associated with the COVID-19 pandemic significantly disrupted normal circulation patterns for U.S. coins. This slowed pace of circulation reduced available inventories in some areas of the country during 2020."
"Because coin circulation patterns have not fully returned to pre-pandemic levels, caps were reinstated in May 2021."
"As the economy recovers and businesses reopen, more coins will flow back into retail and banking channels and eventually into the Federal Reserve, which should allow for the further rebuilding of coin inventories available for recirculation."
Basically, the pandemic changed customers' purchasing habits. In general, many stopped using coins and opted for card or mobile payment methods. Because coins just sat in people's homes, cars, and coin purses, the flow of circulation just stopped. That means that local banks can't get the coins they need to supply businesses.
Businesses like ours have many customers making small cash purchases, requiring coins to give change.