The Effect of Government Policies on the Coin Cycle

Coin circulation tends to be an afterthought for many issuing authorities. Quite often, the emphasis is placed on maintaining enough inventory to avoid shortages rather than a strategy that encourages an active circulation cycle. The presentation will look at the coin cycle and the relationship between the mints, issuing authorities, banks, retailers, CITs, and the public. Each of these entities have different requirements and influence the circulation cycle differently. The structure of the note/coin boundary influences public behavior, which drives cash handling decisions by retailers and banks. There is not a “one-size-fits-all” solution, but identifying a strategy and setting goals for circulating coins can result in efficiencies in the coin cycle.