There’s not a coin shortage problem, there’s an allocation problem

(KLFY)- “The main reason is the because the United States is in a declared pandemic. This is a federal emergency so throughout the United States, you have pockets where commerce is not being done,” says Louisiana State Senator Fred Mills about the ongoing coin shortage in businesses.

Pennies, nickels, dimes, and quarters seem to be running low inside businesses.

Signs have gone up on doors asking customers to use exact change when checking out because of the coin shortage.

However, President of FM Banks Fred Mills says there is not a shortage problem, it’s an allocation problem.

Mills says during the stay at home mandate, less people were out which caused less businesses to receive cash and coin revenue.

“Right now, people have coins; businesses have coins. Some do some don’t and because bank lobbies are closed, because there is not as much commerce the coins are not allocated correctly,” Mills continues.

Ann Babineaux, small business owner of Hand To Hand thrift store, says she has seen and her business has felt the impact of the coin problem.

She says it has caused her to conduct her business and future transactions differently.

“People are breaking dollar bills because they don’t have change. People are telling me pennies are hard to find. I can’t break large bills or go to banks to get change,” explains Babineaux.

Mills encourages small business owners to check with their local banks if they are experiencing coin problems.

He says some banks are seeing an increase in coin distribution.

Mills adds, “Check with banks. Banks are starting to see distribution more from Federal Reserve and US Mint.”