The shortage of coins is a symbol of the lack of money suffered by many American families amid the pandemic
Fed officials believe the currency shortage is temporary.
Photo: JIM WATSON / AFP / Getty Images
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“The United States is currently suffering from a currency shortage. Please use debit, credit or another type of contactless payment if possible ”, this is how many establishments in the country receive customers when announcing one of the unexpected victims of the pandemic crisis.
In the midst of the acute economic crisis, with millions of people unemployed following a wave of layoffs due to the paralysis of economic activity, the shortage of coins is a symbol of the lack of money that many American families suffer.
The situation has reached the point that several associations of retail businesses in the country, including the National Grocers Association (NGA, in English) have formally urged in a letter to the Federal Reserve and the Treasury Department to take “quick” measures in this regard and facilitate the flow of coins.
Specifically, they stressed that cash represents more than a third of the funds personally exchanged by US consumers, and has a particular impact on people with lower incomes.
In the United States, almost 25% of the population is unbanked or underbanked, that is, they have to resort to unconventional financial services, so they have little access to plastic money.
Currencies flow interrupted
The problem, whose magnitude has not stopped growing, has already been discussed in the federal Congress.
“What has happened is that, with the partial shutdown of the economy, the flow of currencies seems to have almost stopped,” explained Jerome Powell, chairman of the Fed, in an appearance in July before the Committee on Financial Services of the Chamber of Commerce. Representatives.
On the one hand, the US Mint limited the number of employees in the spring at its various facilities to avoid contagion of the coronavirus, although in recent weeks it has resumed normal activity.
But the main cause seems to be the economic paralysis, which has caused many currencies that are usually exchanged not to move before the closure of businesses, which substantially altered circulation.
Powell indicated that it is a “temporary” situation derived mainly from “distribution” problems and said that the central bank is working with the banks of the Fed’s districts to ensure that “the supply goes where it has to go.”
Also the Secretary of the Treasury, Steven Mnuchin, made an unusual call to citizens: “If you have extra coins at home, please use them for shopping, deposit them at the bank or try to exchange them.”
“Help the currencies move,” said the Treasury chief in a message on his Twitter account.
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