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 Replies: 10 / Views: 3,305 |
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Pillar of the Community
United States
3098 Posts |
This always questioned me. Why is it that some banks like Banque de France, Swiss National Bank and many others put exchange deadlines on their notes from past series? It could be stopping counterfeiting, but wouldn't making it non legal tender do the same?  I'm really angry about this because an old franc note I had was from the 80s, which means I can't change them for euros anymore, even though the banknote deadline for new series only is in 2012...  |
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Moderator
 Australia
16837 Posts |
Why? Because they can.
I suppose form a banker's point of view, it's good, because it discourages the "under the mattress" investment strategy. If people want to be sure their money will still be good in 20 or 50 year's time, they should put it in the bank, where it belongs.
It also means they can "write off" these unpresented banknotes, without having to keep them on the books or worry about somebody trying to cash them in years down the track.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Pillar of the Community
Germany
1238 Posts |
Right, quite a few central banks do that. Seems odd to me to keep notes for years and later complain about them not being exchangeable any more. (Yes, I know this is dealt with differently in the US, but it is always a good idea to assume that "elsewhere" not everything is exactly like "at home".) In many cases, when a central bank issues a new note or series, the old one becomes "worthless" after some time. The period of time during which that money can be exchanged is usually determined by law. So the "deadline" does not come out of the blue, and (at least here in Europe) most central banks will even place a reminder online. Here is a current one from the Banque de France for example: http://www.banque-france.fr/fr/inst...20081205.htm In other words, if you have any old 100 francs "Delacroix" left over, they will become worthless (except for collectors) at the end of January. Or, if you have an old Austrian 20 schilling note (Carl v. Ghega http://www.oenb.at/de/rund_ums_geld...entausch.jsp type), that loses its value at the end of September ... Christian Edited by chrisild
12/07/2008 09:50 am
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Pillar of the Community
 United States
3098 Posts |
Quote:
Seems odd to me to keep notes for years and later complain about them not being exchangeable any more. (Yes, I know this is dealt with differently in the US, but it is always a good idea to assume that "elsewhere" not everything is exactly like "at home"  Yeah, the US allows notes from... 1883 (I think) can be exchanged and even used as legal tender. I just feel that all central banks need to stand behind their notes, especially for people holding them overseas. But on the other hand, every time a deadline rolls around, they do make a nice windfall... Edited by wd1040
12/07/2008 1:37 pm
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Pillar of the Community
Germany
1238 Posts |
Everybody is free to exchange those notes that are about to expire into "current" money. And in most cases (again, this is from a European POV) you have several years between the "recall" and the deadline. So in a first phase you can just spend the cash, after that you can take the money to the central bank. People who do not care about either option during 10 or 20 years (depends on the country) will indeed lose their money at some point.
In Germany this is not done either, ie. the Federal Republic has a "no deadline" policy. Which means that all DM notes (and all coins except one) ever issued in this country can always be exchanged into euro cash. Also, several other euro area member states (AT, BE, ES, IE, LU, SI, SK) have unlimited redemption periods at least for their last pre-euro notes.
Christian
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Pillar of the Community
Spain
1361 Posts |
I know how it is to have a banknote that you can't exchange anymore becuase it is not legal tender anymore. Sometimes after the expiry dates, it is when you find out you have a banknote kept in your suit pocket or inside a bag that you have not used for a long time. The worst part is the note is not even good for collectors because of the condition. I agree on not putting an expiry date on currencies. Quote:
Yeah, the US allows notes from... 1883 (I think) can be exchanged and even used as legal tender. I just feel that all central banks need to stand behind their notes, especially for people holding them overseas 1883, wow I would not exchange it even if it is in bad condition  |
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Pillar of the Community
Germany
1238 Posts |
Maybe my approach is just a fairly pragmatic one, but I do not see such an enormous difference between being able to exchange "old" notes at a central bank forever, and having a dozen or more years to do so. Anyway, here is good news for you: Once the new euro notes are issued (as from 2011 according to the current schedule), today's notes will be withdrawn (unlike the coins; the pre-2007 euro and cent pieces just stay in circulation). However, you will be able to get the notes redeemed without any deadline.
Christian
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Pillar of the Community
United States
3098 Posts |
I feel this way about old notes because many people travel and bring wait... I can put these on ebay! I heard about the forever exchange of Euro notes, but I thought the first one was coming out next year o.O Anyways, I heard that it will still be centered around the architecture and bridge styles of Europe, so I wonder if will look any different from the ones now... In other words, I'm excited that a new series of Swiss francs will come out later next year, Britain will get a new Series F banknote, and the NEXGEN $100 will be here too! |
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Pillar of the Community
Spain
1361 Posts |
Quote:
I heard that it will still be centered around the architecture and bridge styles of Europe, so I wonder if will look any different from the ones now...
FYI, the reverse of the euro coins have already changes but not a big difference. You won't even notice the difference between the 2007 and the previous years. |
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Pillar of the Community
Germany
1238 Posts |
For the coins, the primary difference is that the "map" on the 10 ct - €2 pieces now shows a map of Europe, instead of the old map which showed the pre-2004 EU. The notes will, apart from added security features, probably depict Cyprus and Malta too. And some extra language versions of "ECB" will be added. And no, they won't come in 2009 ...
Christian
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Pillar of the Community
United States
3098 Posts |
Ahh... I also read that most E500 notes are in Spain. ManilaGalleon, care to explain why?  Edited by wd1040
12/11/2008 01:19 am
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Replies: 10 / Views: 3,305 |
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Posted 12/07/2008 09:48 am
