On June 15, the Federal Reserve announced a temporary coin shortage due to the COVID-19 pandemic. This shortage is due to a change in the normal circulation of coins. The country saw an almost overnight switch to contactless payments by businesses. Other businesses that deal with physical cash, such as restaurants, who would deposit their earnings at banks, were shut down due to the pandemic. The regular flow of coins was due partially to the change in business payments, temporary business shut downs and the decreased production by the U.S. mints as the U.S. mints reduced staffing during this time.
The Federal Reserve anticipates that the coin inventory will fix itself, once businesses resume usual operations and the coin circulation returns to normal. In the meantime, the Federal Reserve will allocate coins for each financial institutions based on historical usage. The Federal Reserve will continue to review limits based on national receipt levels, inventories and Mint production.
Guaranty Bank will continue to monitor the coin shortage situation and the correspondence from the Federal Reserve. We will provide updates when new information is available.
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