1 00:00:01,920 --> 00:00:07,040 Speaker 1: Welcome to brain Stuff production of iHeart Radio. Hey brain Stuff, 2 00:00:07,080 --> 00:00:11,720 Speaker 1: Lauren Bogelbaum. Here. At grocery stores, convenience stores, and hardware 3 00:00:11,760 --> 00:00:16,000 Speaker 1: stores across America, curious signs are popping up asking customers 4 00:00:16,040 --> 00:00:19,520 Speaker 1: to pay with credit cards, debit cards, or exact change. 5 00:00:20,120 --> 00:00:22,919 Speaker 1: Is it because cashiers don't want to handle physical dollars 6 00:00:22,920 --> 00:00:26,440 Speaker 1: and cents that could be contaminated with the coronavirus? Nope, 7 00:00:26,560 --> 00:00:30,639 Speaker 1: it's because the United States is currently experiencing a coin shortage. 8 00:00:31,640 --> 00:00:35,760 Speaker 1: So where have they gone? America's pennies, nickels, dimes, and 9 00:00:35,840 --> 00:00:40,320 Speaker 1: quarters haven't disappeared. The COVID nineteen pandemic has simply disrupted 10 00:00:40,360 --> 00:00:44,680 Speaker 1: the normal cycle of coin circulation. According to the U. S. Treasury, 11 00:00:44,800 --> 00:00:47,559 Speaker 1: there were forty seven point eight billion dollars worth of 12 00:00:47,560 --> 00:00:51,920 Speaker 1: coins in circulation as of April, which was actually four 13 00:00:52,000 --> 00:00:55,080 Speaker 1: hundred million dollars more than in April of nineteen. But 14 00:00:55,160 --> 00:00:58,040 Speaker 1: those coins are not moving through the economy like they 15 00:00:58,040 --> 00:01:01,560 Speaker 1: should be. The Federal Reserve gives several reasons as to 16 00:01:01,600 --> 00:01:05,920 Speaker 1: why this is happening. Banks and businesses nationwide closed their 17 00:01:05,920 --> 00:01:09,399 Speaker 1: doors during the lockdown phases of the pandemic, including cash 18 00:01:09,440 --> 00:01:13,600 Speaker 1: and coin heavy sectors like convenience stores, public transit, and laundromats. 19 00:01:14,840 --> 00:01:17,240 Speaker 1: The U S Mint also slowed its production of new 20 00:01:17,280 --> 00:01:20,080 Speaker 1: coins during the early stages of the pandemic, as staff 21 00:01:20,200 --> 00:01:22,880 Speaker 1: was reduced for safety reasons at the min's Philadelphia and 22 00:01:23,000 --> 00:01:28,440 Speaker 1: Denver locations. Even as the economy reopens, consumers are opting 23 00:01:28,480 --> 00:01:32,480 Speaker 1: for contactless payment and generally using less cash and coins, 24 00:01:32,840 --> 00:01:35,479 Speaker 1: meaning more coins are sitting at home in mason jars, 25 00:01:35,520 --> 00:01:40,120 Speaker 1: piggy banks, and under couch cushions. So what does this mean? 26 00:01:41,120 --> 00:01:44,240 Speaker 1: Retail stores are feeling the pinch of the inconvenience and 27 00:01:44,400 --> 00:01:48,200 Speaker 1: passing it along to their customers. The National Grocer's Association 28 00:01:48,280 --> 00:01:51,280 Speaker 1: and several other retail industry trade groups sent a strongly 29 00:01:51,280 --> 00:01:54,600 Speaker 1: worded letter to Federal Reserve Chair Jerome Powell and Treasury 30 00:01:54,600 --> 00:01:58,120 Speaker 1: Secretary Steve Manustion in late June, saying that the federal 31 00:01:58,200 --> 00:02:01,720 Speaker 1: rationing of coin shipments to banks quote threatens the functioning 32 00:02:01,760 --> 00:02:05,040 Speaker 1: of our member businesses and, by extension, the needs of 33 00:02:05,040 --> 00:02:09,959 Speaker 1: our customers. In their letter, the group's cited economic statistics 34 00:02:10,000 --> 00:02:13,000 Speaker 1: showing that cash is still very much king in certain 35 00:02:13,040 --> 00:02:18,120 Speaker 1: sectors and among certain consumer demographics. For example, between forty 36 00:02:18,120 --> 00:02:20,800 Speaker 1: five to sixty percent of sales at grocery stores and 37 00:02:20,800 --> 00:02:25,120 Speaker 1: convenience stores are cash payments. Nearly half of all transactions 38 00:02:25,120 --> 00:02:28,160 Speaker 1: of ten dollars or less are paid in cash, and 39 00:02:28,480 --> 00:02:31,400 Speaker 1: consumers with an annual household income of twenty five tho 40 00:02:31,639 --> 00:02:37,160 Speaker 1: dollars or less paying cash for forty of their transactions. 41 00:02:37,200 --> 00:02:41,200 Speaker 1: So what's the solution. The long term solution is to 42 00:02:41,360 --> 00:02:43,760 Speaker 1: wait for the economy to return to normal, at which 43 00:02:43,760 --> 00:02:47,800 Speaker 1: point coins will naturally flow back into circulation. But in 44 00:02:47,840 --> 00:02:50,280 Speaker 1: the meantime, the Federal Reserve and the U s Mint 45 00:02:50,360 --> 00:02:54,040 Speaker 1: are taking action. The Mint has ramped up coin production, 46 00:02:54,240 --> 00:02:57,280 Speaker 1: outpacing its usual one billion coins a month, with one 47 00:02:57,280 --> 00:02:59,839 Speaker 1: point two billion coins in June and one point three 48 00:03:00,000 --> 00:03:02,239 Speaker 1: five billion a month for the rest of according to 49 00:03:02,280 --> 00:03:05,560 Speaker 1: The New York Times. The Federal Reserve announced in June 50 00:03:05,560 --> 00:03:08,160 Speaker 1: that it was rationing out its coin inventory by sending 51 00:03:08,200 --> 00:03:11,680 Speaker 1: banks and credit unions smaller than normal coin shipments based 52 00:03:11,720 --> 00:03:16,720 Speaker 1: on historical demand. The Fed also convened an emergency US 53 00:03:16,800 --> 00:03:20,840 Speaker 1: Coin task Force, composed of government and industry leaders, including 54 00:03:20,880 --> 00:03:24,480 Speaker 1: banks and armored car companies. The task force is expected 55 00:03:24,520 --> 00:03:26,239 Speaker 1: to come up with a set of recommendations by the 56 00:03:26,320 --> 00:03:30,160 Speaker 1: end of July. One of the task forces early accomplishments 57 00:03:30,280 --> 00:03:33,799 Speaker 1: was to create the hashtag get coin moving, which banks 58 00:03:33,800 --> 00:03:37,200 Speaker 1: and credit unions are plastering across Twitter to encourage people 59 00:03:37,240 --> 00:03:39,600 Speaker 1: to cash in their piggy banks to get more coins 60 00:03:39,640 --> 00:03:47,800 Speaker 1: back in circulation. Today's episode was written by Dave Ruse 61 00:03:47,840 --> 00:03:50,200 Speaker 1: and produced by Tyler Klang. For more on this and 62 00:03:50,240 --> 00:03:52,800 Speaker 1: lots of other totally money topics, visit how stuff works 63 00:03:52,840 --> 00:03:55,520 Speaker 1: dot com. Brain Stuff is a production of iHeart Radio. 64 00:03:55,720 --> 00:03:58,560 Speaker 1: For more podcasts my heart Radio, visit the iHeart Radio app, 65 00:03:58,680 --> 00:04:01,360 Speaker 1: Apple Podcasts, or wherever you listen to your favorite shows.