In addition to issuing currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More 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 valueThe figure or amount written on the banknote or coin which indicates the amount of its economic value. It is usually written in letters and numbers. More to redeem these to their holders.
In the United States, this task is carried out by the Mutilated Currency Division of the Bureau of EngravingMarking with incision or etching an intaglio printing plate to create a design which will be transferred on the paper or another substrate during the printing. More 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 denominationEach individual value in a series of banknotes or coins. More. Sometimes, specialists only have fragments of paperSee Banknote paper. More to base their analysis on. In addition, banknotes contain machine-readable features that are invisible to the naked eye but serve for their authenticationThe process of proving that a banknote or security document is genuine. More 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 banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More 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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