Cash is still king but, where are all the coins?
Written by Tariq on July 16, 2020
If cash is king, what does that make coins? Right now, coins are M.I.A.! The federal government said last month the Federal Reserve established a U.S. Coin Task Force to “mitigate the effects of low coin inventories caused by the COVID-19 pandemic.” The C-Team, (That’s Not The Real Name) is a 22 members task force. Representing government agencies, banks and businesses, and they will meet this month with the goal of sharing recommendations in early August. The goal to identify “actionable steps that supply chain participants can take to address the current coin circulation issue.”
Daniel Soques, an assistant professor of economics at the University of North Carolina Wilmington, called the situation a “perfect storm” of circumstances born out of the pandemic, during which businesses that deal heavily in coins, such as laundromats, may have closed, while the fear of getting the coronavirus by touching currency may have spurred people to avoid physical monetary transactions altogether.
Last month, Federal Reserve banks began allocating money from existing coin inventories to banks as a “temporary measure.” As of April, there was nearly $48 billion of coinage in circulation, the Treasury estimated. Fed Chair Jerome Powell acknowledged at a House Financial Services Committee hearing last month that banks are also suffering through the lack of a “flow of coins.” To Read More Click Here
Source: NBC News
