Annual Report to the Congress on the Presidential $1 Coin Program
- Slowing Growth of $1 Coin Inventories
- Future Reporting and Legislative Action
Slowing Growth of $1 Coin Inventories
Reserve Bank inventories of $1 coins continued to grow over the past year to more than $1.4 billion as of May 31, 2012, or about $1.3 billion more than the Reserve Banks held before the start of the Presidential $1 coin program. As a result of the Treasury’s decision to suspend minting of Presidential $1 coins for circulation, the growth rate of the $1 coin inventories has slowed considerably, as seen in Figure 1.
Reserve Bank inventory levels through the first five years of the program grew consistently at an average of 66 million pieces per quarter. In the first quarter following the Treasury’s decision to suspend minting $1 coins, Reserve Bank inventory levels grew by only 14 million pieces. The slowing inventory growth continued during the first two months of the second quarter of 2012 with inventory levels growing by only 2 million pieces over that period (see Table 1). We believe Reserve Bank inventories will begin decreasing as slower receipts of $1 coins from circulation are outpaced somewhat by normal payments to depository institutions to meet the modest demand of their customers. Given recent levels of payments to depository institutions, we estimate that Reserve Banks hold more than 40 years of $1 coin inventory, assuming continuation of current levels of demand.
Note: The United States Mint has indicated that it paid to circulation $47 million Native American $1 coins through its Direct Ship program in 2010, $40 million in 2011, and $1.8 million in 2012 (as of June 1). These data are not included in the above Reserve Bank payments to circulation.
Receipts from Circulation
RB Payments to Circulation
Ending RB Inventory 1+2+3-4
|Q2/2012(as of May)||1,434||0||60||58||1,436|
Note: Reserve Bank payments to circulation do not include the $1 coins that the United States Mint has issued directly into circulation. See note to Figure 1. Return to table