Like all other supply chains in the United States, the country's distribution of new coins had been severely disrupted by the spread of the coronavirus pandemic. After months of disruptions, retail stores are now experiencing a massive coin shortage, leading some outlets to require customers to the pay only using the exact amount of their purchases or use credit cards and checks.
Stores with high consumer traffic, such as gas stations and supermarkets across the country are now asking shoppers to pay with exact change when possible. In light of the shortage, retailers such as Walmart have begun converting some of their self-checkout registers to only accept credit cards.
Meanwhile, other retailers are trying to find other measures to deal with the shortage. Kroger is reportedly offering customers the option of converting their change into points on their loyalty cards. Wawa gas stations are also calling on the public to bring in their coin rolls in exchange for paper bills.
According to sources familiar with the matter, the disruption in the supply of quarters, dimes, nickels, and even pennies had already been occurring for months now. Strict social distancing measures reduced access to public transportation, and other pandemic-related restrictions had severely slowed down the production of the coins at the U.S. Mint.
The same restrictions also hampered the deliveries of new coins to banks, coin-sorting kiosks, and stores. In the same manner, customers were no longer using physical currency as much as before the pandemic had hit, with most choosing to buy the goods they need online and paying for them using digital payment systems.
Federal Reserve Chair Jerome Powell had warned back in June that the flow of coins throughout the country has ground to a near halt due to the lockdowns and shelter-in-place orders. In an attempt to remedy the situation, the Federal Reserve had started to ration its supply of coins.
Several business groups, retailers, and gas station operators had written to the Federal Reserve, informing it that the situation has gotten worse. In their letter, sent out late last month, the groups stated that the shortage had become alarming. The Federal Reserve had issued a response, stating that it would be holding a meeting with the U.S. Coin Task Force to find possible solutions to the problem.
Walmart issued a statement on Thursday, informing all of its customers of the coin shortage, and asking them to help remedy the issue by paying with exact change whenever possible. CVS also issued a similar statement, adding that it is working with its banking partners to minimize the shortage's impact on its customers.
