I have a Fiji 1d note from WW2 which I think might be the smallest denomination, being 1/240 of the basic currency unit. Is there a lower denomination note than this?
The Fiji 1d note is probably the smallest government issusize e note for general circulation if your criteria is the fraction of the basic unit. There were smaller notes for specialised use like the 1/2 d note for the Metropole Internment Camp on the Isle of Man.
The smallest in size I believe is considered to be a 1 pfg notgeld from the German city of Passau.
1/4 Para denomination notes were produced in Yugoslavia in the 20's, which was unique as most of their notes were printed in the base Dinara unit. Physical size wise, the smallest I know of are ones printed in Russia between 1916-17, some of which were postage stamps.
I think it will be a tie between the Russian postage stamp money and some of the Notgeld (I have ones about the same size as a stamp, but on thicker card) This particular notgeld did actually circulate ie it is not "Serienscheine " but I don't know if the Russian stamp money did.
As far as lowest denomination of a circulation note try Nagorno-Karabakh. It issued a 2 dram note with face value less than US$0.01 in 2004. Reference Banknote book NKR B1a. Pick not list.
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