Is there a shortage of penny? Kroger signs require exact change
Is there a shortage of penny? Kroger signs require exact change
By Michael Grothaus | Published: 2025-10-28 15:05:00 | Source: Fast Company – news
Recently, there has been a rise in reports from consumers that some physical retail stores are experiencing a drop in pennies, making it difficult for cashiers to give customers exact change.
Several social media users reported this week that one of America’s largest grocery store chains, Kroger, was asking customers to use exact change. This has led many to wonder whether there is a shortage of national currencies.
The answer is more complex than just yes or no. Here’s what you need to know.
What happened ?
Several reports this week said customers at Kroger stores were greeted with signs asking them to provide the exact amount when paying with cash.
It was among the reports One of Cincinnati Enquirerwhich said these signs were posted at the company’s 103 stores in the Cincinnati/Dayton division.
“The U.S. Treasury has halted production of pennies, which is now impacting supply,” the signs read. “If you use cash to pay, please consider providing the exact amount.”
Reached for comment by Fast companyA Kroger spokesperson confirmed the move. “We continue to evaluate the impact of the US Treasury’s decision to end coin production,” the spokesperson said.
These signs, along with a growing number of other reports on social media, have fueled speculation about a shortage of American pennies.
Is there a shortage of penny?
Undoubtedly, the availability of the coin is decreasing. but, According to According to the American Bakers Association (ABA), there is currently no “penny shortage” in the traditional sense.
There is even a slowdown in the circulation of pennies across US banks and retailers. And there is a reason for that.
In February, President Trump Announce On Truth Social, he instructed US Treasury Secretary Scott Bessent to stop producing new pennies.
“For too long, the United States has minted pennies that have literally cost us more than our two cents,” Trump wrote, adding: “Let’s eliminate waste from our great nations’ budgets, even if it is one dime at a time.”
The Treasury Department did what Trump ordered.
As the American Bar Association notes, the US Mint, which is responsible for minting US coins, “ceased production and delivered its last shipment of new pennies in August.”
This means that no new pennies have been minted in two months. However, the ABA estimates that there are about 250 billion pennies still in circulation. So why is it said that finding them is becoming more difficult?
That’s because many people don’t like carrying 1-cent coins. They take up quite a lot of space in a purse or purse, so people tend to leave them in drawers, jars, or car cup holders.
This means that, unlike most dollar bills, the large amount of pennies in there are not reintroduced into circulation.
When no new pennies are minted, and not enough existing pennies are put back into circulation, it can result in there not being enough change in the banks and on the cash registers.
This is what is responsible for the “cash shortages” that some retailers and customers are now starting to see.
Why does Trump want to get rid of the penny?
Trump is not the only one who wants to get rid of this penny. A YouGov poll I found earlier this year that more Americans now support eliminating the currency rather than saving it.
Pennies can be uncomfortable. You need a hundred or more of them just to buy something simple, like a can of soda. Carrying a hundred pennies in a purse, purse, or pocket can be cumbersome.
As for Trump, he’s right that it actually costs more than a dime to make a coin. A 2024 Report from the US Mint It revealed that the US government lost more than $83 million in 2024 in penny production.
This is because although the face value of a penny is only one cent, the total unit cost is $0.0369 per coin in 2024. This is more than 3.5 times its face value.
In other words, the penny is disliked by some consumers and does not make financial sense from a mintage point of view. No wonder so many people want to see it happen.
Can Trump really kill the penny?
While the US Treasury Department and the Mint followed Trump’s instructions to stop producing the penny, the penny remains legal tender in America. Most experts seem to agree that Trump cannot end a penny’s life by dictate.
like New York Magazine male In May, eliminating the penny will likely require a congressional action, as Congress controls the specifications of the US currency. However, both chambers of Congress have reportedly introduced bills to demonetize since Trump issued his decree.
The American Bar Association itself notes that the decision to abolish coinage “rests with Congress and the President, as the Constitution grants Congress the power to coin money.”
But he adds, “The banking industry is ready to support any policy that is passed, and will ensure a smooth transition if the currency is formally phased out.”
Can I still get exact change if there are no pennies available?
Given that many items in America are priced at a penny less than a full dollar — before taxes — it is not surprising that if there is a shortage of pennies, stores may have difficulty giving consumers the exact coin.
But if that is indeed the case, the American Banking Association says that “banks and retailers may temporarily round cash transactions to the nearest five cents” due to the widespread availability of nickel. This means that the customer may save a few cents – or pay a few extra cents – depending on how the rounding is done.
However, the price of online transactions, since they are all electronic, should not be affected at all.
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