x
Breaking News
More () »

Tennessee banks ask for spare change deposits due to national coin shortage

As a result of the COVID-19 pandemic, fewer people are using coins at stores. With fewer coins in circulation, there is now a shortage in businesses and banks.

NASHVILLE, Tenn. — Tennessee banks are asking people to deposit spare change at local banks and coin-cashing machines, to help stop a shortage of coins due to the COVID-19 pandemic.

The Tennessee Bankers Association said that people should check with their local bank about depositing coins or exchanging coins for cash, in a press release on Thursday. That way, more coins will be put into circulation.

When stores and businesses closed due to the COVID-19 pandemic, the rate that coins circulate through the economy slowed. Since fewer coins are being exchanged between people, there is now a national shortage of spare change and businesses are asking for more coins as they reopen.

“In the beginning of 2020, more than 4 billion coins were deposited — or recirculated — each month,” Colin Barrett said in a press release, President and CEO of the Tennessee Bankers Association. “Those numbers dropped to less than 2 billion beginning in April.”

RELATED: Walmart asking customers to use credit, debit cards amid national coin shortage woes

Without a healthy supply of coins, businesses may have a harder time handling regular transactions. They may not be able to give people the right amount of change back after they make a purchase. Some are asking people to pay in exact change or to use credit and debit cards.

Officials said there is a large enough supply of coins for the economy to function. However, since people are using them less, fewer coins are available for businesses to use.

As of April 2020, the U.S. Treasury estimates that the total value of coins in circulation is $47.8 billion, up from $47.4 billion as of April 2019.

RELATED: Pandemic causes national coin shortage, impacts felt in Tennessee

Before You Leave, Check This Out