Coin Shortages Are Causing a Liquidity Crisis at Laundromats

[marmar]

(Bloomberg Businessweek) Every morning, Charles Boukas drives to six Chase banks in the San Diego area in search of quarters. The most he ever drove to was eight, but one branch was closed that day, and two others didn’t have change. Boukas, the 55-year-old owner of the Coin Hut Laundromat, is in a bind: He’s running low on quarters because residents of apartment complexes are making change and not using his machines. The whole trip takes about two hours, and the total amount of quarters he can get is worth $120 because his banks limit how many coins they give out. So he’s been seeking alternative sources.

Under couch cushions? Maybe not that far—but close. “Our biggest success has been friends and family so far, and the banks are just a daily grind that I do,” he says.

On top of a slowdown in foot traffic, laundromat owners such as Boukas are struggling because the coronavirus seems to have stopped up the flow of coins through the economy. People made fewer store trips and many businesses stayed closed with old change sitting in their tills. Even big retailers have felt the pinch, with many putting up signs at registers encouraging customers to use exact exchange or pay with plastic. Some have called it a national coin shortage, but as of April, the U.S. Treasury estimated that about $47.8 billion worth of coins were in circulation, compared with $47.4 billion last year.

“I don’t refer to it as a shortage, I refer to it as ‘We don’t have coin moving.’ It’s there, it’s just not in the right place,” says Jim Gaherity, chief executive officer of Coinstar, which collects loose change at machines that often are found in grocery stores. “It’s in homes. It’s probably in some businesses that haven’t reopened at this point in time. It’s in banks—so it’s there.” .................(more)

https://www.bloomberg.com/news/articles/2020-08-01/coin-shortage-u-s-laundromats-are-running-out-of-quarters?

[Clash City Rocker]

1. I went through a drive-through this week. There was a sign asking us to use debit/credit cards

Because of the coin crisis. I hadn’t heard of it before then.

[GemDigger]

2. I made our gas station very happy yesterday.

I bought a few things and she asked if I wanted to donate the remaining nickel to (can't remember) and then it dawned on me about the change. I ended up hitting my piggy bank giving (exchanged) them $150 in change and left my phone number when they needed more.

There was a lady behind me and I apologized for holding up the line and was very surprised when she said thank you to me for bringing in change...

[zeusdogmom]

3. Maybe more of us need to do this

I'm sure there are many jars of coins sitting on dresser tops or tucked into drawers. I know there is a stash in my dresser drawer.

Or maybe it is all the swear jars started since the orange menace moved into the White House ...

[GemDigger]

4. I am also going to start bringing change for anything under $10 wherever I go

It will be a pain for them to count, but at least they will have some change.

I told the gal at the gas station how much I had left of pennies, nickels, dimes and quarters and that I would be their temporary change bank if needed.

pssh the swear jar is overflowing into a 5 gallon bucket heading for a 50 gallon drum.

[zeusdogmom]

5. 50 gallon drum 🤣

Oh let's face it, laughter helps to get thru this shit storm. Oops, another swear jar deposit ...

[AnyFunctioningAdult]

6. I have seen the signs posted everywhere for weeks

It is interesting to read it is not a government issue, but a stagnation one. Coins are not moving. Maybe like toilet paper, businesses that function a lot on coins have started to stockpile more than they need.

I have not really paid cash for anything in this country in about ten years now other than tips and at my favorite Chinese restaurant that annoyingly does not accept cards. If you think of things that can carry germs around, cash has to be near the top of that list right?