US Coin Shortages Persist

Despite the increase in production at the US Mint, coins for general circulation are still struggling to keep pace with public demand, forcing the Federal Reserve to again limit orders from its customers, especially for dimes and quarter dollars. It is monitoring its inventories to determine whether order limits will be extended to cents and 5 cent coins as well.

The Fed first placed depository institutions on allocation in June 2020, because not enough coinage was flowing back to banks from retail establishments, whose business was impacted by COVID-19 pandemic restrictions.

The Federal Reserve’s Cash Product Office (CPO) then set up the Coin Task Force, partnering with the US Mint to alleviate the perceived shortages and distribution problems caused by the pandemic. After several months, the coin shortfalls and distribution channels appeared to have stabilised, and allocations were lifted.