SIOUX FALLS, S.D. (KELO) — You may have seen signs around asking for exact change in numerous businesses; that’s because the COVID-19 pandemic has obstructed the supply chain and circulation patterns for the U.S. coin, according to The Federal Reserve.
The Federal Reserve has a statement posted online explaining the lack of U.S. coins because the Federal Reserve coin orders are increasing as places throughout the nation begin to reopen. With such rapid demand after reopening, The Federal Reserve’s coin inventory is being reduced to below normal levels.
“The Federal Reserve is working on several fronts to mitigate the effects of low coin inventories. This includes managing the allocation of existing Fed inventories, working with the Mint, as issuing authority, to minimize coin supply constraints and maximize coin production capacity, and encouraging depository institutions to order only the coin they need to meet near‐term customer demand,” The Federal Reserve posted online.
The Chair of The Federal Reserve, Jerome Powell, spoke before the House Financial Services Committee about the coinage problem amid the coronavirus pandemic. You can go to that section below by clicking the third star down in the video courtesy of C-SPAN.
A key point Powell mentioned during his testimony was, businesses and households will be under strain because of the lay-offs and businesses having to temporarily close. This impacts the coinage issue due to people now spending less money and all of these businesses across the nation trying to reopen and needing more change.
However, after calling over a dozen banks, the national coin shortage doesn’t seem to be impacting South Dakota. Signs may be up asking for exact change, but this seems to be just a precaution according to multiple banks.
Mark Gieske is the Vice President and Branch Manager at Cortrust Bank in Sioux Falls. He said they are not experiencing any sort of coin shortage. He went on to say that Cortrust Bank has a coin reserve they’ve always kept, so if need be they’re prepared.
Gieske did say, however, that the only limitation the bank currently has due to this coin shortage impacts coin collectors. He said some collectors come in to the bank to buy boxes of coins and they have limited that to only one box because of an email Cortrust Bank received from the Federal Reserve. Other than that…
“It’s business as usual,” Gieske said.