A shortage of coins in the United States, and in the Twin Lakes Area, is affecting some businesses and individuals, but it is not expected to last long. Some retailers, including some Walmart stores, are only accepting credit or debit cards, because they don’t have enough coins to make change.
The reason for the shortage is the COVID-19 pandemic according to Tanya Fust, regional operations manager at First Security Bank in Mountain Home.
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First Security Bank sent an email to its customers this week asking for anyone with coins to bring them in.
Fust explains what the local bank is doing during the shortage.
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Some banks in the country are paying $55 for $50 worth of coins, so they can keep up with demand from the businesses they serve.
Fust says they don’t expect the coin shortage to last long, especially if customers can bring in the coins they have.
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According to the Federal Reserve, the COVID-19 pandemic has greatly disrupted the supply chain and distribution of the U.S. coin. Their website says, “In the past few months, coin deposits from depository institutions to the Federal Reserve have declined significantly and the U.S. Mint’s production of coins also decreased due to measures put in place to protect its employees.”
The Federal Reserve says it has taken several actions to alleviate this problem, including managing the allocation of existing federal inventories of coins, working with the Mint and encouraging depository institutions to ask for only the coins they need to meet customer demand. They have also recommended the removal of barriers on loose and rolled coins as deposits as well. According to the website, it is believed that things with the coin will return to normal once circulation increases and regions reopen; however, in the near-term, it can be an ongoing issue.
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