The American Bankers Association today urged the Federal Reserve and Treasury Department to alleviate the operational challenges caused by the end of penny production, such as by providing public education, giving guidance on rounding transactions and ensuring the existing penny supply continues to circulate during the transition.
Earlier this year, President Trump directed the Treasury Department to stop producing pennies. The U.S. Mint produces coinage but the Fed distributes coins to banks and credit unions.
In a letter, ABA said that all stakeholders — banks, retailers and consumers — would benefit from a coordinated federal response to the situation. It asked that the Fed take immediate action to continue accepting penny deposits at all coin terminals nationwide while more long-term actions are undertaken to manage penny circulation. This deposit infrastructure should be maintained until such time as pennies are formally withdrawn from circulation through a clear and coordinated transition plan, the association said.
“We ask that Treasury and the Federal Reserve formulate a plan to manage penny circulation to meet current demand and to reduce future demand in recognition that no more pennies will be minted,” ABA said. “The federal government response should be communicated nationwide to the industry and the general public to maximize awareness of the issue.”
