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Mutilated banknotes have their own hospital

Categories : Cash generates security, Cash is trust
June 23, 2017
Tags : Banknote/Note, Cash, Processing, Security, Security features, US
Ever wondered how central banks can find out if the money you're trying to redeem was truly damaged or ripped?
Communication Team / Equipo de Comunicación

In addition to issuing currency and implementing monetary policies, central banks have a mission that is often less well-known. Indeed, these institutions are responsible for collecting mutilated banknotes and identifying their original face value to redeem these to their holders.

In the United States, this task is carried out by the Mutilated Currency Division of the Bureau of Engraving and Printing. This department exists since 1866 and was established just five years after the government started issuing the first dollars. It brings together chemists and forensic analysts that thoroughly examine burnt, soiled or torn banknotes to determine their initial denomination. Sometimes, specialists only have fragments of paper to base their analysis on. In addition, banknotes contain machine-readable features that are invisible to the naked eye but serve for their authentication in such cases or when there is a suspicion of counterfeiting. 

About 30,000 damaged banknotes are processed by the Mutilated Currency Division per year, representing a value of about $30 million. Furthermore, the workload usually tends to increase after natural disasters hit the country. According to the Treasury’s regulation, banknotes will be redeemed at face value when at least one half on the banknote remains and when it is absolutely certain that the rest of the note has been destroyed, be it by fire, chemicals, water, or any other means. Each central bank has its own regulation regarding the repayment of damaged notes.

This service is offered to all citizens for free. If you have mutilated banknotes at home, you can send these to the Mutilated Currency Division’s experts at: Bureau of Engraving & Printing, MCD/OFM, Room 344A, 14th and C Streets SW, Washington DC 20228.

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