They issued a statement explaining the decision:
Temporary coin order allocation in all Reserve Bank offices
and Federal Reserve coin distribution locations effective June 15, 2020
The COVID‐19 pandemic has significantly disrupted the supply chain
and normal circulation patterns for U.S. coin. In the past few months,
coin deposits from depository institutions to the Federal Reserve have
declined significantly and the U.S. Mint’s production of coin also
decreased due to measures put in place to protect its employees. Federal
Reserve coin orders from depository institutions have begun to increase
as regions reopen, resulting in the Federal Reserve’s coin inventory
being reduced to below normal levels. While the U.S. Mint is the issuing
authority for coin, the Federal Reserve manages coin inventory and its
distribution to depository institutions (including commercial banks,
community banks, credit unions and thrifts) through Reserve Bank cash
operations and offsite locations across the country operated by Federal
The Federal Reserve is working on several fronts to mitigate
the effects of low coin inventories. This includes managing the
allocation of existing Fed inventories, working with the Mint,
as issuing authority, to minimize coin supply constraints and maximize
coin production capacity, and encouraging depository institutions to
order only the coin they need to meet near‐term customer demand.
Depository institutions also can help replenish inventories by removing
barriers to consumer deposits of loose and rolled coins. Although the
Federal Reserve is confident that the coin inventory issues will resolve
once the economy opens more broadly and the coin supply chain returns
to normal circulation patterns, we recognize that these measures alone
will not be enough to resolve near‐term issues.
Consequently, effective Monday, June 15, Reserve Banks and
Federal Reserve coin distribution locations began allocating coin
inventories. To ensure a fair and equitable distribution of
existing coin inventory to all depository institutions, effective June
15, the Federal Reserve Banks and their coin distribution locations
began to allocate available supplies of pennies, nickels, dimes, and
quarters to depository institutions as a temporary measure. The
temporary coin allocation methodology is based on historical order
volume by coin denomination and depository institution endpoint, and
current U.S. Mint production levels. Order limits are unique by coin
denomination and are the same across all Federal Reserve coin
distribution locations. Limits will be reviewed and potentially revised
based on national receipt levels, inventories, and Mint production.
This coin rationing occurs as Americans are hording cash in record amounts due to the COVID crisis.
As Viv Forbes warns at The Epoch Times, don’t let our cash money become the biggest COVID casualty. Swapping paper money for a monopoly of electronic money is a bad deal.
We should always be free to save our cash and protect the value of our savings by investing in real assets or sound money like gold and silver.
For many people in the world, a store of gold coins, silver coins, gem stones, or a bit of productive land has allowed them to survive or escape when their government became too oppressive or lost a war, and the local fiat money became a cubic currency.
Unless, of course, history repeats…Gold confiscation?