FedCash® Services: Updates to coin allocation effective July 20, 2020
The Federal Reserve continues efforts to mitigate the effects of low coin inventories caused by the COVID-19 pandemic. On June 11, we announced
the Strategic Allocation of Coin Inventories aimed at the equitable distribution of Federal Reserve coin inventory and new coin produced by the U.S. Mint, the issuing authority for U.S. coin. Over the last month, Federal Reserve Banks and coin terminals have been allocating coin for all Federal Reserve FedCash® Services customers.
On June 30, the Federal Reserve announced the establishment of the U.S. Coin Task Force,
which is a limited-scope and limited-duration task force that will work to identify, implement, and promote actions to address COVID-19 related disruptions to normal coin circulation. The task force will meet in July with recommendations expected by early August.
In addition to the task force, the Federal Reserve continues to work on many fronts with our industry partners, including the U.S. Mint, to minimize supply constraints and maximize coin production capacity. We are closely monitoring our coin inventory levels, which are heavily reliant on the U.S. Mint’s production and its ability to ship new coin to the Reserve Banks, and on coin deposits from depository institutions.
As a result of the Federal Reserve’s coin allocation strategy and increased production at the U.S. Mint, a majority of our coin distribution locations now have accumulated some additional inventory of all transactional coin denominations. In addition, while at much lower than normal levels, we continue to receive some coin deposits from depository institutions. In light of these factors, and in an effort to get more coin into circulation in a fair and equitable manner, the Federal Reserve is increasing current coin allocation caps effective July 20.
Coin allocation limits will be updated on July 20
Please refer to the table below for the current and new coin order allocation limits. The new limits will increase the amount of coin that can be ordered for pennies, nickels, dimes, and quarters. Each endpoint’s size designation (i.e., small, medium, etc.) will remain unchanged for each denomination. The new caps will begin to be applied on orders placed on Friday, July 17, for pick-up on Monday, July 20.
(Click link to launch table)
The Current amounts went into effect on June 15, and the New amounts will go into effect on July 20.
Please note that these limits establish the maximum allocation for your orders. However, if our coin inventory is depleted or low, we may not be able to fill your order entirely, or we may fill your order with less coin than the caps referenced above.
Coin circulation issues persist
This allocation increase does not signal that the coin issue has been resolved. While Federal Reserve coin inventories have increased enough to raise allocation levels, they are still very low. There are a number of variables that could affect future allocation caps. For example, if the current coin production rate, deposit levels, or Federal Reserve and coin terminal inventories decline, the allocation could revert to initial allocation caps, or be set even lower depending on the circumstances.
The Federal Reserve’s priority is to distribute coin in a fair and equitable manner across all sizes of depository institutions throughout this coin circulation situation. We will continue to monitor U.S. Mint production, coin deposits, and Federal Reserve inventories in our monthly review of order allocation caps.
Service and Support
We appreciate your support as we respond to these challenges together.