Kroger is ending the use of coins in its stores in response to a shortage caused by the coronavirus pandemic, reports FOX 19 Cincinnati.
The Federal Reserve said last month that the pandemic had “significantly disrupted the supply chain and normal circulation patterns of American coins.”
“What has happened is that with the partial shutdown of the economy, the flow of coins through the economy has got everything – it has stopped somewhat,” said the chairman of the Reserve Jerome Powell at a virtual hearing with the House Financial Services Committee on June 17. “The places where you’re going to give your coins, get credit at the store, and get money – you know, fold money – those weren’t working, the stores were closed.” So the whole system has sort of become a stop. ”
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The Federal Reserve said in its statement that it was working with the United States Mint and the reserve banks to resolve the problem through “strategic allocation of coin stocks” to evenly distribute the coins between banks and credit unions .
Powell noted that the Federal Reserve expects the shortage of coins will be a temporary problem as the country reopens and more Americans start spending again.
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According to FOX 19, the rest of the cash transactions will be applied to the loyalty cards of Kroger customers to be applied during their next purchase. Customers can also use funds for Kroger’s Round Up program to support the company’s Zero Hunger / Zero Waster Foundation.
A Kroger spokesperson did not immediately return FOX Business’ request for comment.
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