FedCash® Services: Coin Allocation Removed Effective January 15, 2021
January 13, 2021
The Federal Reserve is pleased to announce that effective January 15, Federal Reserve Banks will return to regular coin distribution for all coin denominations. Order caps will be removed for nickels, the last denomination that has had coin order caps in place since June 2020. Financial institutions (FIs) will be able to place orders for coin from the Federal Reserve without limits and should be able to do the same for their customer orders.
Cap-free coin ordering will start being applied to orders placed on Thursday, January 14 for pick-up on Friday, January 15.
We are closely monitoring coin circulation, which has not fully returned to normal patterns
Thanks to steady deposits from FIs and increased U.S. Mint production, the Federal Reserve Banks are able to remove coin allocation at this time. However, coin circulation has not fully returned to its normal pre-pandemic patterns. As long as the same conditions that led to coin circulation challenges in 2020 are still in place, the Federal Reserve, U.S. Coin Task Force (USCTF), and the cash supply chain will continue to closely monitor the health of the coin supply chain and stand ready to respond.
While efforts to #getcoinmoving have improved the outlook for coin, all coin supply chain partners should remain diligent to keep coin moving. We ask all FedCash Services customers to do their part and to continue to order only what they need to meet near-term demand and to deposit any excess coin to the Federal Reserve. The Federal Reserve will continue to closely monitor U.S. Mint production, coin deposits and orders, and Federal Reserve inventories to meet demand for coin in these unprecedented times.
The U.S. Coin Task Force work continues
Although the coin allocation is lifted, the U.S. Coin Task Force (Off-site) will continue to work to identify lessons learned regarding coin circulation throughout the supply chain. The USCTF will use this insight to develop tools and recommendations in the event of future coin supply chain disruptions. Additionally, the USCTF will continue to share messaging that highlights the importance of returning coins into circulation, so they can ultimately be used by others who rely on them to fully participate in the economy.
We would like to thank our FedCash Services customers, industry partners, the USCTF, and members of the public for all their efforts to #getcoinmoving. It was clear when the coin circulation issues first surfaced, as a result of the pandemic, that it would take all of our collective efforts to manage through and ultimately resolve this situation. Strong partnership and collaboration from all supply chain partners, including the American public, have been essential to #getcoinmoving and to navigate through a uniquely challenging set of circumstances.
Background on Coin Allocation
The Federal Reserve’s coin allocation program began on June 15, 2020. Coin order caps were unique by coin denomination and were based on available inventory. The Federal Reserve committed to reviewing coin order caps on a monthly basis or when inventory levels warranted a change in allocation. Since June 2020, the Federal Reserve increased coin order limit amounts seven times (July 20, August 10, August 31, September 14, October 19, November 16, and December 7). The decision to raise, lower or remove coin order caps was based on several factors, including U.S. Mint production levels, and coin deposits and coin orders from FIs.
Service and Support
If you have questions, please contact your local FedCash Services customer support representative or your Federal Reserve account executive. For a complete list of customer support contacts for your institution, please visit the Contact page.