Where the notes from banks go? ;)

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Fons
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Post by Fons » Thu Nov 08, 2007 8:02 pm

As far as I know they are send to the National Bank of the specific country.
They will destroy all the damaged or very wrinkled notes.

From there they send the notes back to the banks (it's not that the banks get their own bundles back).

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Post by Dakkus » Thu Nov 08, 2007 9:16 pm

If a euro using state has too many notes of some kind, they are sent to some other state where there's a lack of them. For example the Austrians have sent a lot of their used banknotes to Finland. (and because the Finnish central bank is stricter than the Austrian one when it conserns the condition of the banknotes, many of the Austrian notes get shredded right away ... )
And in each country on this planet the central banks are allowed to shred notes. If they didn't, the notes in circulation would be horrible. Even the Spanish and Irish banks shred notes, albeit clearly not as easily as the Finnish one ;)
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Post by Dakkus » Thu Nov 08, 2007 10:20 pm

Currency exchange agencies, including banks, do the currency exchanging as a business. Technically they buy and sell the money. The idea is that when they sell the foreign money, they get more local money from it than it has cost them buying it.
If no people are willing to buy the foreign banknotes from the agency, the agency then brings the money to some other country, where they can have it's value on their bank account or they can sell it to get some other type of money instead. Money is just a merchandise for the currency exchange agencies and it works in all manners like a merchandise. One could even argue that when you exchange your zlotys for euros in Poland, you are actually just buying pieces of paper, not money.
The Polish central bank is naturally not allowed to shred euros (or, at least it will get no compensation for the notes shred ;)).[/list]
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Post by eddydevries » Thu Nov 08, 2007 10:51 pm

Just a thought of me (I don't have prove of it):

I think, when a "foreign" bank has "bad" Euros, they will send them to the ECB which eventually would destroy them (and pay back the foreign bank).
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