A nationwide coin shortage is affecting the United States and it has stores trying to hang on to spare change.
- Problems caused by the novel coronavirus are behind the coin shortage.
- This was announced last month by Federal Reserve Chairman Jerome Powell.
- He said that the typical flow of coins has been stopped by the partial shutdown of the economy.
- Powell expects the problem to disappear once the economy reopens completely and people start spending again.
- However, until then, it might not be easy to acquire coins.
- That includes some retailers, such as Kroger (NYSE:KR), withholding change from customers.
- Instead, the company is adding that excess change to customers’ loyalty cards for future purchases.
- Some stores, like Wawa, are asking customers to donate their extra change to charities to help get coins back in circulation.
- Other retailers are seeking exact change from customers and some are limiting purchases to debit or credit cards.
- The Federal Reserve is also taking steps to bring more coins into circulation.
- Among these are programs for banks accepting coins so that the Federal Reserve can get them back into circulation.
- At this point, it’s unknown just how long the nationwide coin shortage will last.
- The situation may only get worse as businesses stay closed and a second lockdown could exacerbate the issue.
As of this writing, William White did not hold a position in any of the aforementioned securities.