The Federal Reserve of the United States (FED) published a long-awaited clarification on the real value of “Small Face” dollar bills, following worldwide rumors about their value.
These are US$100 bills issued prior to 1996, with Benjamin Franklin’s face smaller than most current versions of the paper with the classic green color, but later – in 2013 – they were replaced with the new version with security measures. was replaced.
This is a long-awaited novelty for Argentinians, who prefer to avoid these versions of the North American bill when exchanging their dollars for pesos.
Without going further, in the informal market, “cavemen” usually take a percentage discount of between 1% and 3% for obtaining old issued dollar bills.
Dollar “small face”: the United States gave the long-awaited clarification about its value
The Federal Reserve of the United States (FED, for its abbreviation in English) clarified that all banknotes in that country, including the so-called “small face” dollar, would remain legal tender, regardless of where they were issued.
Despite the fact that they were discontinued and replaced by a newer version, the “small face” dollar retains its value.
The bank elaborated on its official Twitter account “US Currency”: “Trading in old-design banknotes is not required. All US currency remains legal tender, regardless of issue.”
According to the FED, it is United States government policy that all Federal Reserve note designs are legal tender, or legally valid for payment, regardless of when they were issued. The policy covers all denominations of Federal Reserve notes since 1914, he said.
In addition, the US central bank indicated that the Federal Reserve Board “recognizes that some countries may have different exchange rates or policies for the acceptance of foreign currencies.” However—they caution in the statement—the market, not the United States government, controls these types”.
What happens to “small face” dollars in Argentina?
In the Argentine exchange market, a significant difference can be detected between the different versions of the US$100 bill: for example, financial institutions and their customers prefer to work with the most up-to-date model of the bill, although in the United States The government clarified several times that “small face” is legal tender.
In the legal circuit, with the exception of real estate operations and vehicle dealerships, all dollar issues are the same.
As a result, Banks does not change the “small face” to other designs, arguing that they have the same value.
One of the most common tricks for using dollars issued many years ago is to deposit them in a bank and then withdraw new ones. Institutions are bound to receive them, however this means converting them into official value.