The Federal Reserve announced today that it will resume accepting pennies from banks and credit unions at commercial coin distribution locations on Jan. 14, providing services that were previously suspended.
President Trump last year directed the Treasury Department to stop producing pennies. The U.S. Mint produces coinage but the Fed distributes coins to banks and credit unions. Lawmakers from both parties said they were concerned about the Fed’s decision to stop accepting penny deposits or orders at many coin terminal locations across the U.S. In addition, the American Bankers Association urged the Fed and Treasury Department to alleviate the operational challenges caused by the end of penny production.
In today’s announcement, the Fed said that while it continues to support penny deposits, local inventory constraints had limited activity at some locations. “Our monitoring of the flow of penny deposits from financial institutions as these changes take effect will determine whether some subsequent expansion of ordering options for pennies is feasible, given that penny production has ended,” it said.
ABA President and CEO Rob Nichols welcomed the Fed’s decision.
“By reopening these channels, the Fed is taking practical action that supports consumers, retailers and financial institutions alike,” Nichols said. “We look forward to continued coordination with the Federal Reserve and Treasury to ensure a smooth and orderly transition.”
