NAFCU, CUNA Ask Treasury for Help With Ongoing Coin Shortage

CU trades and others fear the coin shortage can hurt those who rely on cash.

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Since the beginning of the pandemic two years ago, there has been a shortage of coins in circulation due to the increase of contactless payments and online shopping.

This problem has hurt retailers’ ability to make change for cash purposes.

On Monday, CUNA, NAFCU and eight other organizations wrote to U.S. Treasury Secretary Janet Yellen for assistance with the ongoing coin circulation problem, as the U.S. Mint indicated it does not have the capacity to produce more coins to make up for those holding on to jars and piggy banks filled with coins.

In the letter, the 10 organizations asked Secretary Yellen to raise public awareness of the coin circulation slowdown and create a public-facing campaign “to get coin moving in the economy once again.”

“The consequences of a coin circulation slowdown fall hardest on consumers that do not have the ability to pay electronically. If retailers are not able to offer change for cash purchases consumers who rely on cash will be vulnerable,” the letter read.

“We ask that you and the Department of the Treasury use your platform and your voice to raise public awareness of this coin circulation slowdown and the need to get coin moving in the economy,” it added. “By amplifying the [U.S. Coin Task Force’s] messaging through your public engagements and Treasury’s many communication channels, you can help the most coin-dependent of consumers and the financial institutions and retailers that serve them.”

In July 2020, the U.S. Mint and Federal Reserve established a U.S. Coin Task Force to address the mounting coin circulation problem. NAFCU and CUNA are members of the Task Force that has been working to identify and promote actions the public can take to reduce the disruption of normal coin circulation caused by the pandemic.

CUNA and NAFCU said they want credit unions to use resources located on the U.S Coin Task Force website to encourage members to help reduce the coin circulation problem with the following action items: